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Competition Commission has cleared the USD 13 billion all-cash deal involving Essar Oil and Russian major Rosneft as well as its partners.
The transaction, announced in October, would see Rosneft and its partners taking over India's second biggest private oil firm Essar Oil in an all-cash deal valued at about USD 13 billion.
In a tweet today, Competition Commission of India (CCI) said it has approved "acquisition of shares in Essar Oil Limited by Rosneft, Trafigura Group Pte and United Capital Partners".
Under the deal, Rosneft would purchase 49 per cent stake in Essar Oil's refinery port and petrol pumps. Netherlands- based Trafigura Group Pte -- one of the world's biggest commodity trading companies -- and Russian investment fund United Capital Partners split another 49 per cent equity equally.
The remaining 2 per cent is held by minority shareholders after delisting of Essar Oil.
The deal has an enterprise value of close to USD 13 billion, including Essar Oil's debt of USD 4.5 billion and around USD 2 billion debt with the port company and power plant.
About USD 3 billion dues to Iran for past oil purchases will continue to be on Essar Oil books.
Mergers and acquisitions beyond a certain threshold are required to get the approval from CCI, which keeps a tab on anti-competitive practices across sectors.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)