Chinese conglomerate CEFC will buy a 14.16 percent stake in Russian oil producer Rosneft from a consortium of Glencore and the Qatar Investment Authority in a move that further strengthens the energy partnership between Moscow and Beijing.
CEFC China Energy has grown in recent years from a niche oil trader into a sprawling energy conglomerate and the transaction will allow China, the world`s second largest energy consumer, to boost cooperation with the world`s top oil producer.
The deal comes as the United States imposes a new round of economic sanctions on Russia making it difficult for large Western firms like Glencore to develop partnerships and increase ties with state-owned firms such as Rosneft.
Glencore said in a statement that CEFC will buy shares at a premium of around 16 percent to the 30-day volume weighted average price of Rosneft shares.
The deal has yet to close pending final negotiations and on receipt by CEFC of all necessary regulatory approvals, Glencore said.
Glencore and the Qatar Investment Authority, which together bought a Rosneft stake of around 19.5 percent last year, will retain stakes of 0.5 percent and 4.7 percent respectively, Glencore said.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)