New Delhi, Feb 9 (PTI) The government has opposed Hindustan Zinc's plan to buy overseas asset of its parent firm Vedanta Ltd, sources said.

Anil Agarwal-promoted Vedanta had last month said it will sell its global zinc assets to Hindustan Zinc Ltd (HZL) for a cash consideration of USD 2,981 million.

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An official source close to the development said, "Yes, the government has opposed the move of Hindustan Zinc buying out Vedanta's global zinc assets."

The source further said "the ownership of both the companies lies with Vedanta. Therefore, there is no need to buy the overseas asset."

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The government holds 29.5 per cent stake in HZL.

Replying to clarifications sought by BSE on the matter, the company had said the proposed transaction is an attractive opportunity for HZL to increase its foothold overseas and take its brand global.

"We would further like to state that we are not aware of any information which has not been disclosed to the stock exchanges under Regulation 30 of SEBI (LODR) Regulations 2015," HZL had said.

Vedanta holds 64.92 per cent of the equity share capital of HZL.

Subject to receipt of timely regulatory approvals, the transaction is likely to be completed in a phased manner over a period of 18 months, it had said.

Hindustan Zinc is an integrated producer of zinc, lead and silver.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)