Stock advisory Company >> Rosneft closes $13-billion Essar Oil acquisition deal

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The nearly $13-billion acquisition of Essar Oil Ltd by a consortium led by Russia’s Rosneft PJSC was completed on Sunday, two people aware of the matter said. The deal’s consummation paves the way for the Essar group to reduce its debt.

The deal, which Essar termed the largest foreign direct investment in India, includes the sale of a 20 million-tonnes-per-year Vadinar refinery and Vadinar port in Gujarat to Rosneft, United Capital Partners, and Trafigura Group Pte. Essar’s promoters, the Ruias, will retain a 2% stake in these assets.

The total debt of Essar had been estimated at close to Rs1.3 trillion by equity brokerages at the time of signing the deal in October.

An Essar group spokesperson declined to comment. Rosneft could not be immediately reached for comment.