Videsh lands Imperial deal

NEW DELHI, Dec. 31 (UPI) -- Videsh Ltd., a branch of the Indian state oil company, closed a deal Wednesday to buy British oil firm Imperial Energy after receiving shareholder consent.

Videsh, the foreign investment arm of the Indian Oil and Natural Gas Corp. Ltd., said in early December it would offer $2.07 billion in a government-backed takeover bid for the British firm, the first such move by the Indian firm.

Imperial needed approval from 90 percent of its shareholders for the bid to progress, and it emerged Wednesday that 96 percent had voiced their consent, the Financial Times reported.

There were concerns Videsh would look to alter the terms of the original arrangement as the global economic climate and energy sector have declined since rumors of the deal emerged in August.

Observers noted the Indian government would not walk away from the deal, however, for fear of tarnishing its reputation in the world market.

Analysts are concerned that despite the Imperial deal, ONGC is limited in its abilities in the energy market by government intervention.

Imperial boasts potential reserves of some 3.4 billion barrels, held mostly in Russia.