Weekly Deals Tracker: Rosneft buys into Essar Oil; Wipro, HCL acquire US firms

24 October, 2016

In what is the largest-ever infusion of foreign direct investment into India, Russian government-owned energy major Rosneft acquired a 49% stake in the Ruia family-promoted Essar Oil, while Dutch commodity trading firm Trafigura along with Moscow-based fund United Capital Partners bought another 49% for $13 billion (Rs 86,000 crore). The deal includes the sale of Essar Oil’s refining and retail assets as well as a port at Vadinar in Gujarat. While the equity value of the deal is of the order of $6.4 billion, the debt portion is worth about $6.6 billion. This transaction will help the debt-laden Essar Group pay off a significant portion of its Rs 80,000 crore debt.

The week also saw Chennai-based TVS Logistics get a new shareholder on board with Canada’s pension fund Caisse de dépôt et placement du Québec (CDPQ) buying a significant minority stake for $155 million and earlier investors KKR and Goldman Sachs exiting in the process.

Further, in what signals consolidation in the online travel space, Nasdaq-listed MakeMyTrip agreed to buy Ibibo Group, which is co-owned by South Africa’s technology group Naspers and Chinese tech giant Tencent, in a stock deal.

It was a week of big-ticket deals in the IT space. Azim Premji-promoted IT major Wipro agreed to acquire US-based cloud services company Appirio for $500 million in cash. In another deal, IT services giant HCL decided to buy Butler America Aerospace, a US-based engineering services company, for $85 million, in an all-cash transaction, that will help it strengthen its position in engineering services vertical.

Like this report? Sign up for our daily newsletter to get our top reports.


Leave Your Comment
Rosneft-Essar deal: Has the Indian government effectively lent a helping hand to some banks?

Rosneft-Essar deal: Has the Indian government effectively lent a helping hand to some banks?

Aman Malik 10 months ago
Last week, the Ruia family-controlled Essar Oil and the Russian government promoted oil and gas giant OJSC Rosneft announced that the latter, along with United...
Canada’s CDPQ buys into TVS Logistics; KKR and Goldman to exit

Canada’s CDPQ buys into TVS Logistics; KKR and Goldman to exit

Ranjani Raghavan 10 months ago
Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) has agreed to invest $155 million (more than Rs 1,000 crore) to acquire a...
Rosneft-led group plans to complete Essar deal next month

Rosneft-led group plans to complete Essar deal next month

Reuters 6 months ago
A consortium led by Russian oil major Rosneft plans to finally complete its $12.9 billion acquisition of India’s Essar Oil next month, two Russian sources...
No Comments

Weekly Deals Tracker: Rosneft buys into Essar Oil; Wipro, HCL acquire US firms

Powered by WordPress.com VIP