The BP and Reliance $9 billion strategic partnership wins a Euromoney Deals of the Year 2011 award
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
The outstanding transaction was the $9 billion strategic partnership between BP and Reliance. This was not 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.
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.