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Tuesday 12 September 2017

CEFC China to buy 14.16 pc stake in Rosneft for $9 bn


Chinese conglomerate CEFC will buy a 14.16 percent stake in Russian oil major Rosneft for $9.1 billion (£6.9 billion) from a consortium of Glencore plc and the Qatar Investment Authority, strengthening the energy partnership between Moscow and Beijing.
CEFC China Energy has grown in recent years from a niche oil trader into a sprawling energy conglomerate and the transaction will allow China, the world’s second largest energy consumer, to boost cooperation with the world’s top oil producer.
The deal comes as US imposes a new round of economic sanctions on Russia, making it difficult for large Western firms such as Glencore to develop partnerships and increase ties with state-owned firms such as Rosneft.
Glencore said in a statement that CEFC will buy shares at a premium of around 16 percent to the 30-day volume weighted average price of Rosneft shares without naming the price. A CEFC spokesman said the company would pay $9.1 billion.
Glencore and QIA will retain stakes of 0.5 percent and 4.7 percent in Rosneft respectively.

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