Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 14 pages
Data source: Published sources
Share a link:
https://casecent.re/p/65938
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
In September 2005, the Russian state-owned natural gas behemoth, Gazprom, acquired Sibneft for US$13.1 billion from Roman Abramovich, its biggest stakeholder. The acquisition is regarded as a strategic move by Gazprom to become a global energy company with interests in oil, oil processing and petrochemistry. However, scepticism prevails on the potential benefits to be accrued through the renationalisation of Sibneft, as these kinds of initiatives, after the collapse of the USSR, have traditionally led to operational inefficiency and decreased productivity. The case study, while highlighting the rationale behind the acquisition, offers scope to discuss the potential challenges that Gazprom might have to overcome to become a global energy company.
About
Abstract
In September 2005, the Russian state-owned natural gas behemoth, Gazprom, acquired Sibneft for US$13.1 billion from Roman Abramovich, its biggest stakeholder. The acquisition is regarded as a strategic move by Gazprom to become a global energy company with interests in oil, oil processing and petrochemistry. However, scepticism prevails on the potential benefits to be accrued through the renationalisation of Sibneft, as these kinds of initiatives, after the collapse of the USSR, have traditionally led to operational inefficiency and decreased productivity. The case study, while highlighting the rationale behind the acquisition, offers scope to discuss the potential challenges that Gazprom might have to overcome to become a global energy company.