Mining group Vedanta Resources on Thursday completed the long delayed acquisition of oil producer Cairn India Ltd, after 16 months of protracted wrangling over royalty payments. Vedanta paid USD 8.67 billion for 58.5% stake in Cairn India.

The third largest acquisition ever by an Indian enterprise globally gives Vedanta control of nation's biggest onshore oilfield in Rajasthan and 9 other properties in India and one in Sri Lanka were a gas discovery was made recently.

Highlights

Acquired 58.5% of Cairn India Ltd. for a total consideration of USD 8.67 billion

Acquisition completed on 8 December 2011

38.5% stake held by Vedanta plc and 20% stake held by Sesa Goa

Acquisition funded c. 50% from own resources and balance c. 50% from acquisition debt

Cairn India largest private crude producer in India (>20% of India’s production)

World class assets at Rajasthan (>6.5 bn boe in place, with substantial upside)

Low cost operations at Rajasthan and potential to produce 240,000 bopd

Recent exploration success in Sri Lanka

Strong, experienced management team

Enhances and diversifies Vedanta’s strong growth pipeline

Mr Anil Agarwal chairman of Vedanta said that "We firmly believe that Cairn India has the potential to double its current capacity and we will work together to achieve it.”