Purchase of 19.5% of Rosneft shares by a consortium of Glencore and Qatar Investment Authority (QIA) will be the largest foreign investment in the share capital of a Russian company since 1991, according to data from Bloomberg terminal. The amount of the transaction will amount to €10.5 billion ($11,28 billion), was announced at a meeting of the President of Russia Vladimir Putin with the head of “Rosneft” Igor Sechin on Wednesday.
Prior to this, the biggest transaction was considered a reverse takeover Russian “the pole Gold” company KazakhGold British (after the transaction was renamed Polyus Gold International) in 2011 for $7.3 billion.
Privatization of “Rosneft” — the largest deal in Russia this year. In second place — purchase “Rosneft” of 50.08% of the shares of Bashneft in October for 330 billion roubles ($5.3 billion), or $6.2 billion including the net debt of “Bashneft”.
Congratulating the head of “Rosneft” both of the privatization, Putin praised the total value of deals in $17.5 billion, of which €10.5 billion ($11.3 billion) will be paid for a share in the largest Russian oil company. The deal should be closed until mid-December, Glencore said.
According to Putin, the sale of shares of “Rosneft” became the “largest privatization deal” in the global oil and gas sector this year. The same is confirmed by the data of Bloomberg, which is the largest announced M&A deals in the global oil and gas industry was held in October to buy 98% Essar Oil Ltd, the operator of the second largest oil refinery in India, for $8.2 billion (excluding debt Essar). The deal again was attended by “Rosneft”. Russian company and a consortium led by Dutch oil trader Trafigura and the Fund UCP Ilya Sherbovich bought 49% of an Indian operator.
The largest deal in the history of Russia is buying the same “Rosneft” at the end of 2012 TNK-BP for $54.4 billion