Cabinet gives approval to Cairn-Vedanta deal

While giving security clearance to Vedanta's purchase of a majority stake in Cairn India, the Home Ministry had on November 25 pointed to eight instances of the mining group or its affiliates being involved in cases of default of payment, human rights violations or environmental damage.

Sources said the Oil Ministry approached the CCEA "to bring on record" the transgressions pointed out by the Home Ministry.

The material provided by the Ministry of Home Affairs has no bearing whatsoever on the security aspects, the Oil Ministry had stated. Sources said the CCEA concurred with this view.

The planned sale of a 40% stake held by Cairn Energy Plc in Cairn India to Vedanta was first considered by the CCEA in April last year and approved in June, 2011, with certain preconditions.

Cairn and Vedanta complied with all the preconditions and concluded the transaction last month.

Disclaimer: Information presented on this site is a guide only. It may not necessarily be correct and is not intended to be taken as financial advice nor has it been prepared with regard to the individual investment needs and objectives or financial situation of any particular person. Stock quotes are believed to be accurate and correctly dated, but does not warrant or guarantee their accuracy or date.
Our site takes no responsibility for any investment decisions based on recommendations provided on website.
Google Adsense Ads are posted on every page of the website so visitors clicking on Ads and going to those links and carrying any financial deal is not at all related to to our website and any financial deal should be done on their own sole responsibility.

The Union Cabinet today gave final approval to London-based mining group Vedanta Resources Plc's acquisition of a majority stake in Cairn India for $8.48 billion.

The Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Manmohan Singh cleared the deal this evening, highly placed sources said.

Fresh approval was necessitated in view of the Home Ministry pointing to alleged global and domestic "transgressions" by Vedanta Group.