Industry

Rosneft to invest in Essar Oil.

Russain Oil major Co Rosneft is  planning to invest in India by acquiring 49% stake in Essar oil. The company is ready to pay $2.4 billion for the same at by paying Rs 190-195 per share. Formal announcement is this direction is expected soon .

Roseneft is the world’s largest public traded Oil cooperation and by buying a stake in Essar would help them consolidate their position as a Oil major in International market. Essar is controlled by the Ruia family in India which hold 73% of the total company .The deal would conclude once the parent company match the delist price and post that , Ruia’s stake would reduce to 51%. They plan to use the funds raised to reduce the debt that the parent Essar global has accumulated.

Essar has already signed a 10 year pact with Rosneft to supply 10 million tonnes of crude oil.

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