send me the report of merger of reliance with Bharat petroleum

merger of reliance with bharat petroleum

mumbai: the indian corporate world is all set to witness one of the largest mergers in its history so far with boards of reliance industries and reliance petroleum meeting this sunday to consider an amalgamation of the petroleum major with the petrochemicals company. terming the move as a logical one, ask raymond james ltd chief executive john band said the move would help reliance to increase ril's cash flow and to strengthen its balance sheet. "with both hindustan petroleum and bharat petroleum to be put up for sale by the government, reliance might need a large amount of debt, which would be possible by a stronger balance sheet arising out of the merger," he said. another leading analyst termed the merger proposal as an expected development. "other than obvious participation in hpcl, bpcl sale and a stronger balance sheet, a major reason for the merger is tax benefits", he said. explaining his observation, the analyst said the merger of rpl with ril would provide several tax benefits to former. the analyst said as of now rpl, which operates a 27 million tonne grassroot refinery, has a large capital expenditure compared to that of ril which has no project of a huge magnitude lined up presently or even in the future. "post merger, rpl's entire depreciation will be on ril's balance sheet, thus saving on a volley of taxes", the analyst said adding, the swap ratio could be put at one share of ril for 10 or 11 shares of rpl. the boards of both companies will also discuss a proposal for an interim dividend on march three.