Vedanta Resources is in talks to purchase assets or take a substantial stake in the UK oil and gas exploration company Cairn Energy.
According to a report by Bloomberg, the talks are at an advanced stage, with an announcement possible later this month. The companies are said to be discussing a range of options, including an equity stake, asset purchases or a complete takeover of Cairn.
Edinburgh-based Cairn has a market value of £6.22 billion. Its most significant asset is its 62 per cent stake in Cairn India, which operates the country’s largest onshore oil field. Cairn India has a market value of about $13.5 billion (approx. £8.6 billion).
Cairn is also drilling exploration wells off the coast of Greenland through its Capricorn subsidiary. It is thought that the region may hold 50 billion barrels of crude and gas—enough to meet Europe’s energy demand for almost two years.
Vedanta, India’s biggest copper producer, said in 2008 it planned to spend $20 billion in India on mines and power plants over four years.
Vedanta is headquartered in London and employs 30,000 people. It posted a net income last year of around $602 million (approx. £384 million).
Cairn has operational offices in Dhaka, Chittagong, Kathmandu and Tunis, aside from its Edinburgh headquarters. In 2009 it posted profits of $52.7 million (approx. £33.6 million).
