Conditions unmet in $2.6 bn Imperial bid: ONGC

Conditions unmet in $2.6 bn Imperial bid: ONGC

London: Indian oil company ONGC said regulatory conditions on its $2.6 billion bid for Russia-focused oil explorer Imperial Energy had not been met, despite a Russian regulator approving the deal, knocking 14% off Imperial’s shares.

State-controlled ONGC made a 1,250 pence/share bid for Imperial in August, conditional on receiving “certain regulatory clearances".

ONGC said it needed Moscow to agree that Imperial’s assets were not strategic, that the the takeover did not breach restrictions on foreign state-controlled firms buying Russian companies and for the bid to be cleared by the anti-monopoly authority (FAS).

ONGC said on Friday it had been informed by the FAS that the assets were non-strategic, and that the FAS had posted anti-monopoly approval on its website.

However, ONGC says the regulatory conditions remained to be met.

Dealers said the Indian company might be trying to renegotiate a lower bid price.

Imperial shares traded down 13.52% at 921 pence at 2:10pm. The shares jumped sharply on Friday after the FAS cleared the deal.

Imperial declined to comment.