The Union Cabinet, on Wednesday, provided its in-principle approval to the proposed acquisition of government’s 51.1 percent stake in the oil marketing company by PSU oil giant.

ONGC will be having the exposure to exploration, production, refining and marketing of the fuel in both India and abroad after the acquisition.

As a result of the stake sale, HPCL will become an ONGC subsidiary though the capital market regulator may exempt the oil giant from making an open offer for buying another 26 percent stake from the public.

A company, as per the norms of Securities and  Exchange Board of India, has to make an open offer to buy another 26 percent of the target company if it buys 25 percent or more in the later.

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