ONGC/RIL Speculated To Be Bidding For UK's Addax Petro

Oil and Natural Gas Corp (ONGC) and Reliance Industries (RIL) — are being rumoured as the "mystery" bidders for UK-based Addax Petroleum, which could be sold for £5 billion (around $8.26 billion).

While China's state-run Sinopec and Korean National Oil Company are already believed to be in talks with Addax, "the company has been approached by a third mystery bidder, possibly a national oil company from India" - was the speculation by the Telegraph.

London-based Addax Petroleum has fields in Iraqi Kurdistan and Nigeria and is said to be on the block for up to £5 billion.

A formal offer could be out by next week but "there was also chatter that Jean Claude Gandur, the billionaire chief executive of Addax, and his bankers, led by Tim Chapman of RBC, are keen to get a deal done quickly".

Sinopec seems to have offered £4.8 billion offer.

In recent years, China has struck a string of deals in Africa and Asia, but has not been so successful elsewhere.

America blocked an $18.5-billion takeover of Unocal, an oil and gas group, four years ago, while last week, a combination of shareholder unrest and Australian nationalist sentiment scuppered plans for a Chinese group to take a large stake in the miner Rio Tinto.

Meanwhile, the National Development and Reform Commission, China's economic planning agency, reportedly issued an order requiring Chinese firms to report intended overseas acquisitions to Beijing before they sign any legally-binding contracts, a move which could hinder Sinopec's plans to buy Addax.

Earlier in December last year, ONGC had taken control of Imperial Energy for £1.3 billion ($1.9 billion) after an overwhelming 96.8 per cent of London-listed firm's total shareholders accepted its takeover offer.

Imperial was the biggest ever overseas acquisition by ONGC Videsh Ltd, the overseas arm of the state explorer.

Source: Business Standard

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