India finally clears Vedanta takeover of Cairn assets
Fifteen months after striking a deal to sell a controlling stake in its Indian unit, Britain's Cairn Energy has received regulatory clearance and can complete the $6.5bn (£4.1bn) transaction.
The oil firm, which has had a string of disappointments exploring for oil off the coast of Greenland, will sell a 30 per cent stake in Cairn India to Vedanta Resources, the mining and energy company focusing mainly on India.
Vedanta had already amassed about 29 per cent of Cairn India's shares, which will rise to 59 per cent when the deal is completed. Cairn Energy will see its holding in the Indian oil and gas unit fall from 52 per cent to 22 per cent.
The regulatory hold-up stemmed from a disagreement over the level of royalty payments made by Cairn to the Indian government, which has now been resolved.
Nearly 90 per cent of Cairn India's output comes from the state of Rajasthan and a controlling stake in the operation will significantly expand Vedanta's presence in the subcontinent. The sale will give Cairn Energy much-needed cash to keep exploring Greenland, where it has spent about $1bn on drilling in the past four years but has yet to find commercial quantities of oil.
Last week, the FTSE 100 company said its latest two wells have come up dry, taking its tally of unsuccessful attempts to eight. The group is now looking for a partner to help to share the cost of future exploration in the region.
However, Cairn Energy continued to put a brave face on its Arctic adventure last week, with its chief executive, Simon Thomson, saying that the company remained "encouraged that all of the ingredients for success are in evidence", having found "oil and gas shows", even though it has yet to make a commercial discovery.
- 1 Is this bridge haunted by the ghost of nu rave?
- 2 Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
- 3 The West has it totally wrong on Lee Kuan Yew
- 4 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
- 5 Noel Gallagher: I lost sh*tloads of money, a few million, didn’t tell my wife
Is this bridge haunted by the ghost of nu rave?
Saudi Arabia says it won't rule out building nuclear weapons
Germanwings plane crash: Andreas Lubitz 'had eyesight problems' and woke from nightmares 'screaming we’re going down'
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
Revealed: Putin's army of pro-Kremlin bloggers
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...