Vedanta gets formal OK from India to buy Cairn India

1st Aug 2011 13:59

Mining giant Vedanta Resources said it has received conditional approval from the Government of India to buy British oil explorer Cairn Energy's Indian unit, subject to regulatory approvals and royalty payments.Vedanta said it is working with Cairn Energy to satisfy these conditions and complete the transactions. The company said Cairn India plans to seek a shareholder approval for the conditions imposed by the Indian government. Last August, Cairn Energy agreed to sell a majority stake in Cairn India for about £5.9bn but a hiccup related to the royalty payments stalled the deal. Shares of Vedanta, which surged 1.6% in late morning trading, pared some of its gains to trade up 0.6% at 1,781p. Shares of Cairn Energy were up 1% at 373.50p in London.AR