As split looms, Vedanta eyes Saudi for growth

DEMERGER TO ALLOW GROUP TO SLASH DEBT PILE OF $11B

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Indian billionaire Anil Agarwal is inching closer to finishing a long-planned breakup of his metals-to-energy conglomerate Vedanta Ltd., a move aimed at trimming the group's $11 billion debt pile and giving greater attention to different businesses.

While prices of aluminium, zinc, and copper have given up the heady gains of 2024, the 71-year-old tycoon is betting that a simpler structure for the sprawling group and growing demand for critical minerals will add to the allure of his companies even as the spectre of a global recession looms.

The overhaul will allow the group to list each of its key businesses: Aluminium, oil and gas, power, and iron and steel, along with the publicly traded core company Vedanta.

The demerger could provide new funding sources and increase financial transparency across the group, according to Bloomberg Intelligence analyst Mary Ellen Olson.