Rosneft to Buy TNK-BP

State-controlled Russian oil company Rosneft has struck a two-part deal worth about $55 billion to buy privately-owned TNK-BP and make British oil company BP a near-20 percent Rosneft shareholder with two seats on the board. The first part of the Kremlin-backed agreement announced by Rosneft on Monday folds BP's half of TNK-BP, Russia's third-largest oil company, into Rosneft, in exchange for cash and Rosneft stock in an agreement worth about $27 billion, including $12.3 billion of cash and the rest in stock. In stage two, AAR would get $28 billion in cash, but the two deals are independent of each other and the AAR deal is still subject to negotiations, Rosneft said. With the whole of TNK-BP on board, Rosneft, which is already Russia's top oil producer, will control nearly half of Russia's oil output and pump more oil and gas than Exxon Mobil, the world's top international oil company.

http://www.reuters.com/article/2012/10/22/us-bp-rosneft-idUSBRE89L06720121022