Rosneft inks Morgan Stanley buy

Oil Rig25 December 2013, News Wires -Russia’s Rosneft has taken over an oil unit of US bank Morgan Stanley’s commodities division for an undisclosed sum.

The acquisition-hungry oil giant is getting the global oil merchanting unit that includes access to and international network of oil storage facilities, crude oil and oil products inventories and freight agreements.

Some 100 front-office executives and 180 other personnel will join Rosneft as a result of the deal reached on Friday.

The transaction does not, however, include Morgan Stanley’s stake in TransMontaigne of any of its commodities operations outside of the oil and products sector. It also does not include the bank’s current client business relating to oil and products merchanting.

Commenting on the transaction, Rosneft president Igor Sechin said: “The agreements reached today represent a breakthrough in strengthening Rosneft’s commerce and logistics unit, which will spearhead the company’s growth in the international oil and products

“The transaction will deliver increased value for Rosneft’s equity barrels by going deeper into the merchanting value chain, while equally enhancing the visibility of global oil and products markets and opening up new revenue streams by accessing third party barrels.”


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