Chennai Petro won't last as standalone, has to merge with us: IOC Chairman

However, much hinges on whether an Iranian firm, which holds 15% in CPCL, will sell its stake

Merger of Chennai Petroleum Corporation Ltd (CPCL) with Indian Oil Corporation is inevitable, taking CPCL's viability into account in a volatile situation, says IOC's Chairman. The public sector firm held talks with Naftiran Intertrade, the Swiss subsidiary of National Iranian Oil Company, which is yet to come forward and dilute its shareholding to pave the way for the merger.

The development is a recent twist in the company's story. Naftiran Intertrade’s stake in CPCL had, at one time, been a major issue in the wake of US sanctions against Iran. Besides, it was also a bottleneck for the company,