Cairn India has said that its shareholders had approved a merger with the country's biggest producer of aluminium and copper, Vedanta Limited. Owner of the London-listed conglomerate and parent company Vedanta Resources, Anil Agarwal announced a plan to merge the two units in June last year in a move aimed at streamlining debt.
Vedanta Resources paid more than $8 billion to UK-based energy giant Cairn in 2011 for a majority stake in Cairn India. Chairman of the latter company, Navin Agarwal released a statement saying, "I am pleased that the shareholders of Cairn India have approved the merger of Cairn India with Vedanta Limited. We are confident that the financial strength and diversified portfolio of Tier-I assets of the merged company, with strong growth potential, will provide de-risked earnings and stable cash flows and drive long-term value."
The deal has been approved by Indian courts, and is expected to be cleared by the end of the financial year. Anil Agarwal said the move was a "significant step" towards simplifying Vedanta Resources' structure and creating "long term sustainable value".
