Brussels, 11/03/2013 (Agence Europe) - On 8 March 2013, after a careful investigation, the European Commission gave the go-ahead to the acquisition by Russian oil and gas giant Rosneft of sole control over TNK-BP, Russia's third-largest oil company, TNK-BP is currently owned 50% by BP plc, 25% by Alfa Petroleum Holdings Limited (of Russia) and 25% by OGIP Ventures, Ltd (of Russia). The merger, announced in October and notified to the Commission on 1 February, creates the world's biggest oil company.
The merging parties' activities overlap in the exploration of natural gas and crude oil, the development, production and sale of natural gas as well as the development, production and sale of crude oil. At the same time, the parties are both active in the supply of various refined products. The Commission examined the potential effects of the proposed acquisition as regards the development, production and sale of crude oil as well as the production and supply of heavy fuel oil. In addition, the Commission assessed the potential effects of the proposed acquisition in light of a possible vertical link between the development, production and sale of crude oil and the production and supply of certain refined products. The Commission's investigation confirmed that the proposed acquisition did not raise competition concerns because the merged entity would continue to face constraints from a number of strong competitors, while its customers would be capable of switching both to other suppliers as well as to other means of transportation for their crude oil demands.
Rosneft is currently 75%-owned by the Russian state and the deal gives it 100% ownership of TNK through its acquisition of the 50% stake held by BP plc for USD 17.1 billion and a 12.84 % share of its capital (BP will reinvest USD 4.8 bn to buy a further 5.66% take in Rosneft); the two 25% stakes for a total of USD 28 million in cash, making Rosneft the biggest oil company in the world, producing more than 4 million barrel of crude a day, ahead of ExxonMobil of the United States (2.3 millions barrels a day). (FG/transl.fl)