Consolidated: Vedanta merges Indian units

NEW DELHI: London-listed mining heavyweight Vedanta Resources said Saturday it was combining its two Indian subsidiaries into a metals giant that will have a market capitalisation of $20 billion. Under the restructuring, metals producer Sterlite Industries will merge with iron ore miner Sesa Goa, creating one of India’s biggest companies with annual revenues of $14.2 billion. The new company, to be known as Sesa Sterlite, will create an “Indian natural resources champion”, said Vedanta’s billionaire chairman Anil Agarwal. The transaction will be carried out through an all-share deal in which three Sesa Goa shares will be issued for every five Sterlite shares, according to a statement. The new corporate behemoth is expected to be the seventh largest global natural resources company by earnings and its shares will be listed in India and in New York, Vedanta said.

Published in The Express Tribune, February 26^th, 2012.