The state-owned Oil and Natural Gas Corporation on Saturday said it will acquire the government’s 51.11% stake in Hindustan Petroleum Corporation Limited for Rs 36,915 crore.

“Through this acquisition, ONGC will become India’s first vertically integrated “oil major” company, having presence across the entire value chain,” the Finance Ministry said.

With this sale, the Centre will be able to meet half of its disinvestment target of Rs 72,500 crore for 2017-’18, IANS reported.

ONGC, India’s largest oil explorer, will buy shares at Rs 473.97 apiece, its exchange filing said.

The government’s sale is an attempt to create a state-run large oil behemoth that is better equipped to compete with global rivals, Bloomberg reported. “ONGC expects that as an integrated oil conglomerate, its performance will be less affected by the volatility of crude prices due to diversification of its cash flows to midstream and downstream presence through HPCL,” the company said in a statement.