Mining company Vedanta Resources has completed the acquisition of a majority stake in Indian oil and gas explorer Cairn India for $8.67bn.
The 58.5% controlling stake now enables the mining company to enter the hydrocarbon business.
Vedanta purchased a 40% interest in the Indian company from UK-based Cairn Energy, and acquired the rest from Malaysian oil and gas firm Petronas.
Cairn Energy retained an 22% stake in the company, following its first tranche sale of a 10% stake in July 2011.
"I am delighted to announce completion of this transaction, which represents a major milestone in Cairn’s history," said Cairn Energy chief executive Simon Thomson. "It crystallises the very significant value creation that we have delivered from our Indian business, and allows us to return around three and a half billion dollars to shareholders.
"Our remaining 22% shareholding in Cairn India, retained cash and balance sheet strength provide financial flexibility and an excellent platform for future growth opportunities."
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By GlobalDataThe move will give Vedanta control of a large producing oilfield in the Indian state of Rajasthan, nine other properties in India and one in Sri Lanka.
The company entered an agreement with Cairn Energy last year to acquire the stake in Cairn India, but completion of the transaction was delayed due to a disagreement over royalty payments.
The Vedanta-Cairn agreement is said to be one of the largest merger and acquisition deals in India’s energy sector.
