Vedanta mulls Sesa Goa, Sterlite merger
22 February 2012
Vedanta Resources Plc, the London-based non-ferrous metals mining company with its principal operations in India, is looking to merge Sesa Goa with Sterlite Industries in order to simplify its complex corporate structure.
Vedanta may merge its iron ore company Sesa Goa with copper and aluminium maker Sterlite Industries, which will have a combined market cap of nearly Rs65,000 crore, with Sterlite being the main company.
Sesa Goa has a current market capitalisation of around Rs21,441 crore and Sterlite Rs43,158 crore.
Vedanta owns 53 per cent of Sterlite and just over 55 per cent of Sesa Goa, and according to several other media reports, Vedanta may even transfer its entire 38.8 per cent stake in Cairn India to Sterlite. Sesa Goa already holds nearly 20 per cent in Cairn India.
The company had tried to merge its copper, aluminium and iron ore business into one company in 2008 but had to back off after facing opposition from investors.