Analysis of Vedanta and cairn merger

Abstract

In 2010, Vedanta, Indian subsidiary of Vedanta Resources (listed on London stock exchange), made a bid to acquire controlling shares in Cairn. This bid faced hurdles from government, and other stakeholders, but finally Vedanta was able to acquire 58.5% stake in Cairn for $ 8.67 billion1 . Again in 2015, Vedanta made an offer to merge Cairn into Vedanta and again this offer faced opposition from Cairns’ minority shareholders. Finally, in 2017 Cairn was merged into Vedanta with Cairn shareholders getting 1 share and 4 preferred shares of Vedanta for each equity share in Cairn. This report is an approach to study the merger and analyse various factors that were active during the whole duration of acquisition and the merger.