By Maryam Cockar
Glencore said Friday that the group and its consortium partner the Qatar Investment Authority, or QIA, will no longer proceed with the sale of a 14% stake in Rosneft Oil Co. (ROSN.MZ) to CEFC China Energy Co.
The company said the consortium will transfer its 14% stake in Rosneft to a wholly owned subsidiary of QIA for about 7.4 billion euros ($8.87 million), which will be used to settle the consortium's liabilities.
Once the transfer is complete both the consortium and the guarantees provided by Glencore will be terminated. Glencore will retain a stake in Rosneft equal to its original 0.6% equity investment in January, while QIA will hold a 19% equity stake, the company said.
The transaction is subject to conditions and regulatory approvals.
Write to Maryam Cockar at [email protected]