ONGC to buy Imperial for $2.58 billion

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India's ONGC Videsh Ltd on Tuesday beat arch rival China to launch a takeover bid for UK-listed Imperial Energy at 1.4 billion pounds (about USD 2.58 billion).

OVL, which was drubbed by Chinese companies on many occasions over the past few years, won the approval of Imperial's Board of Directors for taking over the Russia-focused company for 1,250 pence per share.

"Imperial Energy's Directors are pleased to have been able to reach agreement with OVL and intend unanimously to recommend shareholders accept the proposed offer," Imperial Energy Executive Chairman Peter Levine said in a regulatory filing to the London Stock Exchange.

OVL Managing Director R S Butola said: "The acquisition represents an important addition to OVL's operations and we believe OVL's financial strength and technical expertise will further enhance the attractive growth potential of the business in the Tomsk region."

Imperial, a relatively small British oil and gas company based in Leeds in UK, has oil producing blocks in Tomsk region of western Siberia in Russia and Kastanai in north-central Kazakhstan.

It produced about 10,000 barrels of oil per day in December 2007 and is targeting to raise this to 80,000 barrels per day (4 million tons a year) by the end of 2011.