No management changes in the merged entity: Anil Agarwal

Interview with Founder & Chairman, Vedanta

With Vedanta looking to compete with diversified global players as it smoothens its path to merge oil business with itself, founder and chairman of Vedanta Resources, Anil Agarwal, in a telephonic interview with Aditi Divekar talks about keeping its management structure intact, while creating a true natural resource company. Edited excerpts:

Will there be a reshuffling at the management level post merger of Cairn India with metals company Vedanta? One had heard of Cynthia Carroll who is chairwoman of Vedanta Resources Plc to be replacing Tom Albanese, chief executive officer of Vedanta Ltd.

There will be no changes at the management level of the merged entity. Every company has to have a chief executive officer and this company, too, will have a similar structure.

Though, Vedanta has sweetened the deal for Cairn India shareholders, some brokerages say the deal is still negative for shareholders of the latter?

With oil prices dipping by 26 per cent and metal prices by about five per cent in the same period, I think the deal is good for Cairn India shareholders as it creates significant value for their company with diversified ownership and balanced risk.

If the merger goes through, will capital expenditure for the merged entity change as Vedanta will have access to cash of Cairn India?

There will be no changes in the capex at all. It will continue to be where it is at present.

Where do you see Vedanta upon merger of the oil business of Cairn India with it?

The plan is to create a true natural resource company out of India that can rival global players like Bralia's Vale SA, Rio Tinto of the US or BHP Billiton of Australia.