Rosneft-led consortium $12.9 billion acquisition of Essar Group's oil arm

Overview:

• A Rosneft-led consortium has acquired a 98% stake in Essar Oil from Essar Energy Holdings (Mauritius).
• 49% share capital of Essar Oil will be sold to Petrol Complex (a subsidiary of Rosneft) and another 49% to Kesani Enterprises (owned by a consortium led by Trafigura and United Capital Partners (UCP)).
• Rosneft, Trafigura and UPC will pay $10.9 billion for Essar Oil's refining and retail assets, and $2 billion for the Vadinar port assets.
• This transaction is the largest ever FDI deal into India and the largest outbound acquisition by Russia.
• The acquisition financing of this deal is supported by VTB Bank.
• Essar Oil operates India's second largest refinery and largest private sector oil retail network.

Wai Yee Tsang - Journalist