India’s cabinet gave the go-ahead on Wednesday for state-run Indian Oil Corp to sell a 24 percent stake in a joint venture to the US-based partner Lubrizol Corp, a government statement said.
IOC held a 50% stake in the joint venture, Lubrizol India Pvt Ltd, according to the company’s 2015-16 annual report. The joint venture makes chemical additives for lubricants.
The remaining stake is held by Lubrizol Corporation, which is largely into the lube additives business.
During his budget speech finance minister Arun Jaitley said that the government will focus on divesting stake in public sector undertaking companies, and perhaps divesting IOC’s stake in Lubrizol India is a move in a similar direction.
“The sale will enable IOC to have long term association with its joint venture partner and ... Lubrizol India Pvt Ltd (LIPL) to have access to the latest global additive technologies developed by Lubrizol Corporation, USA,” the statement said.
(With inputs from Reuters)