Rosneft, partners to announce acquisition of Indias Essar Oil completed

Source: hindustan times

A consortium led by Russian oil major Rosneft will announce on Monday completion of a $12.9 billion deal to acquire Indian private refiner Essar Oil, strengthening ties between the world’s largest oil producer and the fastest growing fuel consumer.

Rosneft will get a 49 percent stake in Essar and the two investors, European trader Trafigura and a Russian fund UCP, will hold another 49 percent in equal parts. The purchase is the biggest foreign acquisition ever in India and Russia’s largest outbound deal.

The deal, initiated about two years ago, will help Rosneft in gaining access to India’s rising fuel retail market.

Rosneft and Trafigura are the latest international companies after Royal Dutch Shell and BP to enter the Indian fuel retailing market.

Rosneft may supply Venezuelan oil to Essar’s Vadinar refinery after a deal to buy a stake in the Indian company is finalised, the Indian company’s managing director LK Gupta told Reuters in August last year.

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