Vedanta-Cairn Merger To Be Good For Both’s Shareholders: Agarwal

The proposed merger between Cairn India and Vedanta Ltd is expected to bring significant benefits to the shareholders of both companies, according to Naveen Agarwal, the chairman of Vedanta. He stated that the merger would not only bolster the cash flow of the company but also provide Cairn India’s shareholders with access to Vedanta’s well-established, low-cost, and long-lasting metals and mining assets.

Agarwal further explained that the shareholders of Cairn India would gain access to Vedanta Limited’s top-tier metals and mining assets. These assets are well-invested, cost-effective, and have a long lifespan. Vedanta’s commitment to enhancing returns from its core operations to unlock value will be advantageous to Cairn India and its shareholders.

In addition to strengthening the company’s cash flows, the merger is expected to decrease earnings volatility due to diversified revenue streams, lower procurement and funding costs. Agarwal also highlighted that the merger would result in significant economies of scale, including better options for capital allocation, and would strengthen their interactions with the government and sustainability initiatives.

Agarwal reassured that they are dedicated to maintaining and enhancing the Cairn India brand and maximizing its potential. He also mentioned that the merger would increase liquidity for the shareholders of the merged entity due to a higher free float.

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