Sterlite and Sesa Goa merger announced
A merger between Sesa Goa and Sterlite has been announced.
Verdata Resources could be making use of merger and acquisition advisors, as it has confirmed a recommended merger between Sterlite and Sesa Goa, which will involve a simplification and consolidation of the infrastructure of the group.
Verdanta chairman Anil Agarwal said this should create one of "largest global diversified natural resources majors", which would promote the growth of industry.
The merger would involve issuing three Sesa Goa shares for five Sterlite shares, with Sesa Sterlite having a 58.9 per cent shareholding.
Sesa Goa managing director P Mukherjee claimed there are "attractive growth prospects" in aluminium, zinc-lead-silver, power, oil and gas.
A join-up between the organisations would enable it to benefit from these opportunities, he added.
This merger is expected to conclude during the 2012 calendar year, subject to the firm using negotiation skills to secure the approval of regulatory bodies and shareholders.
Synergies of $200 million (£126.09) per annum are expected to be created as a result of the deal.
Posted by Ken Hayes
Source: Vedanta press release, February 27th