Rosneft Essar Deal to Open New Routes for India

Russia's Rosneft Oil Company and its partners on 15 October 2016 acquired India’s second biggest private oil firm Essar Oil in an all-cash deal valued at about 13 billion US dollars.
●    Rosneft will have a 49 percent stake in Essar Oil’s refinery, port and petrol pumps.
●    Trafigura Group Pte and United Capital Partners will split 49 percent equity equally. 
●    The remaining 2 percent is held by minority shareholders after delisting of Essar Oil.
●    The deal includes 10.9 billion US dollars for Essar Oil’s Vadinar refinery of Essar Group and 2 billion US dollars for a port terminal that helps feed refinery. 
●    It also includes Essar Oil’s debt of 4.5 billion US dollars and about 2 billion US dollars debt with the Port Company and power plant. 
●    Essar Oil has a portfolio of onshore and offshore oil & gas blocks with about 1.7 billion barrels of oil equivalent in reserves & resources.
●    The company was established in 1969.
●    Essar Group is led by Shashi Ruia and Ravi Ruia.