Rosneft-led consortium buys India’s Essar Oil for $13 billion
Posted on: 17 Oct 2016 09:30:18
17 October 2016 Current Affairs: Russian consortium led energy giant Rosneft Oil Company has agreed to acquire India’s second biggest private oil firm Essar Oil in an all-cash deal valued at about US $13 billion.
The consortium includes Rosneft Oil Company, Netherlands-based commodities trader Trafigura and private investment group United Capital Partners. The business transaction was announced in the presence of Prime Minister Narendra Modi and Russian President Vladimir Putin at the 8th BRICS Summit in Goa.
Rosneft bought a 49% stake in Essar Oil’s refinery, port and petrol pumps, while Trafigura Group Pte and United Capital Partners split 49% equity equally. It includes $10.9 billion for Essar Oil’s Vadinar refinery (India’s second-largest refinery with a capacity of 20 million tonnes) and $2 billion for a port terminal that helps feed refinery. It also includes Essar Oil’s debt of $4.5 billion and about $2 billion debt with the Port Company and power plant.
This acquisition is the largest ever foreign acquisition in India and also is the single largest foreign investment in the Indian refining sector
It is Russia’s largest outbound or foreign acquisition deal. It significant milestone for Rosneft as it is entering India, one of the most promising and fast-growing world markets. With this, Rosneft becomes third international player after Royal Dutch and Shell and British Petroleum to enter Indian fuel retailing market. It also proves the attractiveness of the Indian energy market to foreign investors as India is one of the fastest growing fuel consuming economies in the world
Essar Group : Essar Group is an Indian conglomerate led by Shashi Ruia and Ravi Ruia. It controls number of world-class assets diversified across the core sectors of Energy, Metals & Mining, Infrastructure and Services. It also occupies a strategic position in the global oil market and owns world-class refining and infrastructure assets.
FreshersLive - No.1 Job site in India. Fresherslive Current Affairs 2016 section offers informative quiz questions with answers regarding latest current affairs today for all sorts of competitive exams like UPSC, TNPSC , IFS, IAS, IPS, railway exams (RRB) and banking exams like IPBS PO, IPBS clerk, Federal Bank PO, ICICI, SBI, RBI legal officer & Grade officer posts and much more. Register with us to get latest Current Affairs Updates. Also get latest Current Affairs news and quiz Updates for free alerts daily through E-mail