A consortium comprising Glencore and Qatar Investment Authority (QIA) has ended.
This move terminates a proposed sale of the consortium’s 14.16% stake in Russian oil company Rosneft to CEFC China Energy that was agreed in September last year.
This $9.1bn deal was expected to strengthen the relationship between Moscow and Beijing.
The Glencore and QIA consortium was created in December 2016 with an acquisition of a stake in Rosneft. With the split, QIA will acquire the majority of the consortium’s current stake in the Russian company, while Glencore will retain a 0.57% stake, which translates to the company’s original equity investment as of January last year.
Glencore intends to use the proceeds from the sale to settle the consortium’s liabilities.
The transaction will see QIA own a total 18.93% share of Rosneft.
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By GlobalDataUnder the deal, QIA will offer €3.7bn to Glencore in exchange for the stake.
The completion of the transaction is conditional upon certain conditions, including the receipt of regulatory approvals.
