Cairn India to merge with Vedanta Ltd [ Current Affairs ]
Cairn- Vedanta Metal and mining giant Vedanta Ltd and its subsidiary oil explorer Cairn India which is 60 per cent owned by Vedanta and are being merged. Decision was taken by Independent directors of both the companies owned by billionaire Anil Agarwal.
- This merger will create India’s largest diversified natural resources company. It will also help Cairn spread its risk from volatile oil business to other metals and commodities.
- The merger will be in an all share swap deal which will give the Vedanta Ltd access to Cairn India’s 2.7 billion dollars (Rs 16,867 crore) cash pile.
- Vedanta will use this cash lying with Cairn to pay off part of its 77,752 crore rupees debt for the merger each minority shareholders of Cairn India will receive one equity share of Vedanta.
- Earlier, Vedanta was known as Sesa Sterlite Ltd. It had consolidated its iron ore mining business by merging Sesa Goa Ltd with Sterlite Industries (India) Ltd in 2013.
- Vedanta Ltd is the largest largest diversified natural resources companies with interests in Zinc, Lead, Silver, Copper etc and it is also subsidiary oil explorer Cairn India.
- Published on: June 23, 2015