your password has been reset successfully, Please login again.

Russian oil major Rosneft buys Essar Oil

A pact has been signed between Essar Group and Rosneft regarding the sale of Essar Oil for $12.9 billion.
BY BEx Bureau
BusinessEx
Aug 22, 2017

It is believed that this deal will help in building a good relation between both the countries Russia and India. This is the biggest acquisition deal that has ever took place between these counries.

The transaction is supposed to bring Rosneft with 49.13% holding in Essar Oil and the rest will be divided in equal parts between Trafigura and UCP Russian fund, Essars company statement stated.

The closure of the deal was announced on Monday with the amount of $12.9 billion.

This deal will help Rosneft and other investors to get hold off to 4,00,000 barrels per day in Gujarat and Essars 3,500 retail fuel stations in India.

This deal will help Essar Group in handling its debt burden situation with the cutting of its debt to about $11 billion from its total.

Prashant Ruia, forunder of Essar said, This is the single largest deleveraging ever undertaken in Indian corporate history. Also, adding overall at the group level the deal has helped bring down debt by 50%.

The Groups revenue without Essar Oil will be in excess of $15 billion including operational facilities in sectors like minerals and metals, energy, infrastructure, and services, Ruia said. He added, With this deal, we have completed our monetization program and the completion of our CapEx plan we now look forward to a period of growth in our wider portfolio of businesses. Also, the group has completed a capex plan of 1.2 trillion rupees in the last six years and now we are refocusing our energy across our new portfolio of business.

Please add your Comment
SIMILAR News
April 12, 2018
New Delhi-based startup Chariot has raised Rs.2 crore funding from GEMS Partners. ...More
By Ritu Marya
April 10, 2018
Yumlane's parent company QwikPik secures Rs.26 crore funding from RB Investments and its existing in ...More
By Ritu Marya
April 05, 2018
Digital lending startup Namaste Credit secures $3.8 million funding from Nexus Venture Partners. ...More
By Ritu Marya
April 03, 2018
Ride-hailing company Ola buys public transport ticketing app Ridlr. ...More
By Ritu Marya
April 03, 2018
MoveInSync secures $8 million funding in Series B round led by Nexus Venture Partners. ...More
By Ritu Marya
March 31, 2018
Nandan Nilekani and Sanjeev Aggarwal venture capital fund Fundamentum secures $20 million funding fr ...More
By Ritu Marya
March 30, 2018
Google makes its second direct investment in Mumbai-based fashion e-commerce platform Fynd. ...More
By Ritu Marya
March 28, 2018
Delhi-based workforce management startup Roadcast secures $250,000 in an angel funding round. ...More
By Ritu Marya
March 28, 2018
Micro-lending platform SmartCoin raises $2 million funding in Pre-Series A round led by multiple inv ...More
By Akshay Arora
March 27, 2018
DriveU raises $3 million funding in Pre-Series A round led by multiple investors. ...More
By Akshay Arora
March 27, 2018
Cash Suvidha secures $1 million in Pre-Series A round from Initia Holdings, others. ...More
By Akshay Arora
March 07, 2018
Agri-tech startup Gramophone raises $1 million funding in pre-Series A round led by Info Edge. ...More
By Akshay Arora