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TIMES NEWS NETWORK (Mumbai) : Hindustan Petroleum Corporation Limited (HPCL) is set to acquire 100 retail outlets of Sri Lanka's Ceylon Petroleum Corporation for $100 million.

HPCL, India's third largest oil company, has offered $23 million more for these petrol pumps than its domestic rival Bharat Petroleum Corporation (BPCL), which bid $77 million.

HPCL officials said, "there has been no communication yet from the Sri Lankan government about the deal."

If it comes through, 66% of the island nation's oil product sales will be controlled by Indian firms. Indian Oil Corporation (IOC) which has already taken over 100 retail outlets on the invitation of the Sri Lankan government, currently has a 20% market share.

IOC, India's largest oil company, is now setting up an additional 150 franchise outlets through its subsidiary, Lanka IOC Ltd. During the last seven months of the current fiscal, the Lankan subsidiary reported a net profit of Rs 3.2 crore on a turnover of Rs 65 crore.

Industry sources said the Reliance group and the IOC-owned IBP Ltd both bid $40 million, while the ONGC-controlled MRPL bid $45 million for the 100 pumps.

Among the international bidders, Petronas and China Petroleum bid $40 million and $45 million. Caltex and Shell had earlier withdrawn.

www.ceylincoproperties.com

www.ppilk.com

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