Cairn gives up on deadlines for Vedanta deal

Cairn Energy has again extended the deadline for completing the $9.6-billion sale of a majority stake its Indian unit to Vedanta Resources, the London-listed but Indian-focused mining company – this time indefinitely, as it awaits government approval for the deal.

In a statement, the Scottish oil explorer said it was not setting any new deadline, but that the two companies had agreed to ''extend the closing date on their sale and purchase agreement in order to secure the necessary consents and approvals from the government of India to complete the transaction''.

''Cairn has been told that the cabinet committee on economic affairs, which met on 6 April to discuss the Cairn-Vedanta transaction, has referred the matter to a group of ministers (GoM). The GoM has not yet met,'' the statement said.

At Thursday's annual meeting in Edinburgh Sir Bill Gammell, Cairn's founder and chief executive, told shareholders he ''hoped to get a satisfactory conclusion in a short period of time''. He added, ''In India you need the three P's: positive, patience and perseverance.''

Cairn had earlier maintained that the deal would fall through if it was not wrapped up within the deadline approved by its own and Vedanta's shareholders. The original deadline for closing the transaction was 15 April, which was later extended to 20 May.

Last August Cairn had agreed to sell up to a 51 per cent stake in its strategically important Rajasthan oilfields to Vedanta, the metals mining company founded and controlled by Indian-born billionaire Anil Agarwal.