"Glencore confirms that it is in final-stage negotiations regarding a transaction involving the acquisition, as part of a consortium with the Qatar Investment Authority (the Consortium), of a 19.5% interest in the issued share capital of Rosneft for €10.2 billion (the Shares)," Glencore said on Wednesday.
The company added that the proposed arrangements stipulate a "5 year offtake agreement with Rosneft representing a sizeable additional 220,000 bbls/day for the Glencore Marketing business."
Glencore will also allocate 300 million euros (almost $323 million) as part of a consortium deal with the Qatar Investment Authority (QIA) for the acquisition.
"Under the proposed arrangements, Glencore would commit €300 million in equity (the Glencore Equity) with the balance of the consideration for the acquisition of the Shares to be provided by QIA and by non-recourse bank financing," the company added.
