22nd Feb 2012,Wednesday
The Vedanta Resources group may mergeiron ore firm Sesa Goa with copper and aluminium maker Sterlite Industries as it tries to simplify a complex corporate structure and deal with challenges to its main businesses.
The exercise, which is still on the drawing board, will create agiant metals and mining firm with the third-biggest profit in the private sector after ONGC and Reliance Industries. It will have a combined market cap ofRs 66,000 crore, or about $14 billion, more than double that of Sterlite's nearest rival Hindalco Industries.
The merged entity would straddle across all major resources, including oil, iron ore, aluminum, copper, zinc and lead, and will make Sterlite's parent, Vedanta Resources, owner of the entire shareholding of recently-acquired Cairn India.
"Vedanta's stated strategy is to simplify and consolidate its corporate structure. The management reviews options to deliver this strategy on an ongoing basis and will update the market as appropriate," a Vedanta spokesperson said.
A Delhi-based law firm has been asked to work on legal requirements for the merger.
The Vedanta Resources group may mergeiron ore firm Sesa Goa with copper and aluminium maker Sterlite Industries as it tries to simplify a complex corporate structure and deal with challenges to its main businesses.
The exercise, which is still on the drawing board, will create agiant metals and mining firm with the third-biggest profit in the private sector after ONGC and Reliance Industries. It will have a combined market cap ofRs 66,000 crore, or about $14 billion, more than double that of Sterlite's nearest rival Hindalco Industries.
The merged entity would straddle across all major resources, including oil, iron ore, aluminum, copper, zinc and lead, and will make Sterlite's parent, Vedanta Resources, owner of the entire shareholding of recently-acquired Cairn India.
"Vedanta's stated strategy is to simplify and consolidate its corporate structure. The management reviews options to deliver this strategy on an ongoing basis and will update the market as appropriate," a Vedanta spokesperson said.
A Delhi-based law firm has been asked to work on legal requirements for the merger.
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