Sometimes having half the pie isn’t enough; you just want the whole thing.
That may be the case with Rosneft, the world’s largest publicly traded oil company, which today applied to the Federal Anti-Monopoly Service (FAS) for the right to purchase 100 percent of shares in the Bashneft oil company, the Kommersant newspaper reported. Earlier this month, the state-controlled behemoth purchased a 50.08 percent share of Bashneft from the Russian government for 329.7 billion rubles ($5.24 billion), making Rosneft the majority shareholder.
Permission from the anti-monopoly agency would “automatically give [Rosneft] the right to purchase any smaller share,” a source in Rosneft told the Interfax news agency.
However, even with permission, Rosneft may struggle to purchase more shares. The second-largest shareholder in Bashneft is the government of the republic of Bashkortostan, which owns a 25 percent stake in the company and does not appear keen on the idea.
A government source told Kommersant that the Bashkir authorities had not been informed of Rosneft’s intentions and were currently not ready to sell the shares. Previously, the republic's leader Rustem Khamitov stated that, based upon preliminary agreements, Rosneft and Bashkortostan planned to manage Bashneft together.
News of Rosneft’s application to FAS caused ordinary Bashneft stocks to appreciate by 3.4 percent on the Moscow Stock Exchange, reaching a price of 3200 rubles ($51) per share. Preference shares appreciated by 2 percent to 1500 rubles ($24) per share. Total capitalization of Bashneft in both types of share stands at 523.2 billion rubles ($8.32 billion).
The FAS plans to consider Rosneft’s request in the coming month.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
