ONGC Videsh Ltd’s $5 billion deal with the US energy giant ConocoPhillips would be the sixth biggest merger and acquisition (M&A) deal involving an Indian company.
ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), agreed to buy US energy major ConocoPhillips’ 8.4 percent stake in Kazakhstan’s Kashagan oilfield for about $5 billion.
If the deal concludes, this would be the country’s sixth largest M&A deal till date after Hindalco’s $6 billion acquisition of Canadian company Novelis Inc.
Tata Steel’s $12.2 billion takeover of European steel giant Corus, Vodafone taking over controlling stake in Hutch-Essar from Hutchison for about $11 billion and Bharti Airtel’s acquisition of Zain Telecom’s African assets for about $10.7 billion are the three biggest deals involving Indian companies.
Billionaire Anil Agarwal-led Vedanta group’s $8.6 billion acquisition of Cairn India, is probably the fourth largest M&A deal involving an Indian company.
The stake buy in Kashagan field, which current produces about 370,000 barrels day (18.5 million tons), is subject to approval of governments of Kazakhstan and India as well as other partners in the Caspian Sea field waiving off their pre-emption rights.
Other large M&A deals involving Indian companies are the Hindalco-Novelis transaction ($6 billion), Daiichi-Ranbaxy ($ 4.50 billion), ONGC-Imperial ($2.80 billion) and NTT DOCOMO-Tata Teleservices.