Reliance Industries Ltd (RIL) and Reliance Petroleum Ltd. (RPL) have informed the Bombay Stock Exchange (BSE) separately that they are going to be merged very soon. In the filing to the BSE both the companies have said that a meeting of the respective board of directors of the companies would be held on March 2. The board meeting would consider and recommend the amalgamation of RPL with RIL.

 

The deal is likely to enhance the position of RIL as an integrated global energy company. With this merger RIL is going to be one among the world’s 50 most profitable companies. After such amalgamation RIL will also be one of the top ten non-state owned refining companies globally. It is expected that RIL will enhance weightages in domestic indices as well as gain significantly from higher financial strength and flexibility.

 

In addition to this, RIL-RPL merger will have operational synergies from combined business in areas such as crude sourcing, product placement, process optimization and logistics along with consolidation of a world-class operating refinery asset.

 

At present RIL produces 6.60 lakh barrels and RPL produces 5.80 lakh barrels a day. With the merger the combined capacity of the two companies is likely to be 1.24 million barrels of oil a day.