Rosneft has forked out $12.9billion to secure its opening into the “high opportunity” Indian market.
The firm’s board unanimously agreed the takeover of a 49% interest in Essar Oil Limited (EOL) from Essar Energy Holdings.
“Acquisition of the stake in one of the largest and most sophisticated refineries in India will enable Rosneft to enter the high-opportunity Indian market and boost the positions of the trading arm of the Company in the Asia Pacific region,” a company statement read.
India’s compound GDP growth over the last three years has been 29.8%, according to Rosneft.
Igor Sechin, Rosneft’s chief executive, said: “This is a significant milestone for the Company. Rosneft is entering one of the most promising and fast-growing world markets. At the same time, this project provides unique opportunities for synergies both with the existing assets of the Company and Rosneft’s future projects, and opens a big potential for expansion of its presence on the markets of other APR countries, such as Indonesia, Vietnam, the Philippines and Australia.”
The deal is being implemented with the assistance of VTB Capital, which acting as an exclusive financial advisor of EOL’s current shareholders.