|
|
| BP/Reliance | |
| Value | $9 billion strategic partnership |
| Advisers | Goldman Sachs, Morgan Stanley |
| return to the Asian Deals of the Year index | |
Finally, to M&A, where the outstanding transaction was the $9 billion strategic partnership between BP and Reliance. This wasn’t a landmark takeover, since there was no overall change of control – instead, Reliance Industries sold a 30% stake in its southern and eastern Indian oil and gas fields to BP for $7.2 billion plus up to $1.8 billion in performance payments. However, it warrants recognition partly through scale – one of the biggest foreign direct investment deals into India – and partly through the sheer effort of getting any inbound deal over the line in India.
This was not a swift transaction. Three government ministries, a cabinet panel and the prime minister had to sign off on it, a process that took the best part of half a year. But for BP, this was worth waiting for.
Most publicity around the company in recent years has involved the Gulf of Mexico spill, the cost of the clean-up and the associated divestments, so an important purchase such as this in an emerging market puts it back on the front foot again. Reliance gets expertise, particularly in deep-sea drilling – its fields are deep and it needs help to exploit them effectively. There’s also a joint venture that comes out of this deal to sell liquefied natural gas; with it should come much-needed infrastructure development.
|
Asia |
| Sun Art Retail Group |
| Kingdom of Thailand |
| ICBC (Asia) |
| BP/Reliance |
| Vedanta Resources |
| Republic of Indonesia |
| Return to the Deals of the Year main index |
