Indian state-owned exploration and production company Oil and Natural Gas Corporation has agreed to acquire UK-based Imperial Energy for $2.6 billion in an all-cash deal, to increase and diversify energy resources for the growing Indian economy, according to the Associated Press.

Oil and Natural Gas Corporation (ONGC) and Imperial Energy have said that their respective boards have agreed to the terms of the acquisition, which values Imperial at $22.95 per share. ONGC is acquiring Imperial through its overseas investment arm, ONGC Videsh (OVL).

The news source said that the offer price rpresents a 62% premium to Imperial’s share price on the day prior to the takeover approach by OVL. Imperial is mainly focused on exploration and production for hydrocarbon resources in Russia’s western Siberia region and Kazakhstan.

RS Butola, OVL’s managing director, 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. Additionally, we view this as an important opportunity to expand on the continuing co-operation between Russia and India in the energy sector.