Vedanta Limited and Cairn India Limited have announced that the merger of Cairn India with Vedanta has become effective from today, April 12 2017.
Based on CY 2016 reported EBITDA of diversified natural resources companies globally, Vedanta is ranked #6 among the global diversified natural resources companies and the only one with majority of its sales to the Indian market. This merger consolidates Vedanta’s position as one of the world's largest diversified natural resources companies, with world-class, low-cost assets in Metals & Mining and Oil & Gas. The merged company will have a larger pro forma market cap of $15.6 billion and higher free float of 49.9% and one of the strongest balance sheets.
{alcircleadd}
As a premier natural resources company, the newly merged company is committed to enhancing oil & gas production, and preserving the "Cairn" brand, one of the profit making segments of the company.
Commenting on the merger, Navin Agarwal, Chairman of Vedanta Limited said:
"We are pleased to have completed the Vedanta Ltd - Cairn India merger and are very excited about the future of the combined company. ..With world class assets in Metals & Mining and Oil & Gas, Vedanta will fuel India's economic growth and generate value for all stakeholders."
{googleAdsense}
Sudhir Mathur, Acting CEO of Cairn India said:
"I am very excited about Vedanta's commitment to grow our Oil & Gas business. The merger with Vedanta Ltd will de-risk Cairn India by providing access to a portfolio of diversified Tier-I, low cost, long-life assets, to deliver significant near term growth, while retaining the substantial upside from our oil & gas business."
“This merger will increase the appeal of Vedanta Ltd to global investors as it simplifies the structure and increases the size and free float of the company," said Tom Albanese, CEO of Vedanta Limited.
Responses
