Rosneft-led group to acquire Essar Oil

India Infoline News Service | Mumbai | October 15, 2016 14:37 IST

Rosneft bought a 49% stake in Essar Oil's refinery port and petrol pumps, while Netherlands-based Trafigura Group Pte and Russian investment fund United Capital Partners split another 49% equity equally.

Essar oil
Russia's state-controlled oil giant, Rosneft and its partners took over Essar Oil in an all-cash deal valued at about $13 billion. The deal was signed during the Brics Summit in Goa in the presence of PM Narendra Modi and Russian President, Vladimir Putin.

Rosneft bought a 49% stake in Essar Oil's refinery port and petrol pumps, while Netherlands-based Trafigura Group Pte and Russian investment fund United Capital Partners split another 49% equity equally. The remaining 2% is held by minority shareholders after delisting of Essar Oil.

Essar Oil said it has signed two agreements for the sale.

The deal would help the Essar Group, one of India's largest and most indebted conglomerates, trim its about Rs 88,000 crore (over $13 billion) debt and ward off creditor pressure.
 

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