Russian energy major Rosneft has announced that it has completed the acquisition a 49.13% equity stake in India’s Essar Oil from Essar Energy Holdings and its affiliates. The value of the deal is around $12.9bn.
Additionally, an investment consortium comprising Trafigura and UCP has also completed their acquisition of a separate 49.13% share of Essar Oil.
The purchase is the biggest foreign acquisition ever in India and Russia’s largest outbound deal.
Rosneft said the assets of Essar Oil has a significant development potential and create synergy for the company’s businesses in the Asia Pacific markets。
“This day marks the beginning of a new chapter for Essar Oil. Together with our partners we intend to support the company to significantly improve its financial performance and, in the medium term, adopt an asset development strategy. The closing of the deal is a remarkable achievement for Rosneft too: the company has entered the high-potential and fast-growing Asia Pacific market. The acquisition of the stake in the Vadinar refinery creates unique opportunities of synergies with existing Rosneft-owned assets and will help improve efficiency of supply to other countries within the region,” said Rosneft’s Chief Executive Officer Igor Sechin.
