Essar bids for three European refineries
The Ruias controlled Essar on Monday evening made a financial bid to buy one British and two German refineries from Anglo-Dutch oil giant Royal Dutch Shell.business Updated: Aug 18, 2009 21:28 IST
The Ruias controlled Essar on Monday evening made a financial bid to buy one British and two German refineries from Anglo-Dutch oil giant Royal Dutch Shell.
The valuation of three refineries is pegged at close to Rs 12,180 crore ($2.5 billion), sources said quoting the offer document put out by the company for the interested bidders.
The three refineries includes the UK-based Stanlow refinery in Ellesmere Port, Cheshire, and two German refineries, with a combined refining capacity of 18 million tonnes per annum.
The move comes close of the heels of the recent acquisition by Essar Oil of the 50 per cent stake of western energy majors including Royal Dutch Shell, British Petroleum and Chevron in the Kenya Petroleum Refineries Ltd, operating a 4 million tonnes per annum refinery at Mombassa in Kenya.
Asked to comment, Essar spokesperson said, “As a Group, we keep looking at growth opportunities in the businesses in which Essar operates. However, it is not our policy to comment on any specific proposal”.
A sources close to the company, however, said the strategy being pursued by Essar while acquiring the overseas refining firms is to be close to the markets where it is already exporting petroleum products.
“Essar is seeking more international M & A opportunities for which it has set up a team in London. Europe and Africa are two important export destinations for Essar to export its petro-products,” he added.