Carlyle Seeks UAE Partners for Lukoil Asset Deal

Carlyle's Strategic Partnership Talks

U.S. private equity firm Carlyle has initiated exploratory discussions with investors in the United Arab Emirates. The talks focus on forming potential partnerships for its preliminary agreement to acquire international assets from the Russian firm Lukoil, a deal pending U.S. regulatory approval.

Deal Context and Sanctions

The proposed acquisition includes significant assets like oilfields and refineries. State-controlled Abu Dhabi investors Mubadala, XRG, and IHC have reportedly been in discussions with Carlyle. The deal must comply with sanctions set by the U.S. Office of Foreign Assets Control, which requires sale proceeds to be held in a frozen account.

Market and Investor Implications

This move highlights a strategy to diversify risk and secure capital for the large-scale transaction, valued by one source at approximately $20 billion. UAE investors have shown specific interest in Litasco, Lukoil's trading arm, signaling a focus on strategic energy trading assets.

Future Outlook

The finalization of the deal and any subsequent partnerships depend heavily on approval from U.S. authorities. Lukoil has until February 28 to divest its global portfolio, and the market is watching for further developments and potential bidders.

FAQ

Q: Who are the main parties involved?
A: Carlyle Group, Lukoil, and potential UAE partners including Mubadala, XRG, and IHC.

Q: What is the main condition for the deal?
A: The deal requires approval from the U.S. Office of Foreign Assets Control due to sanctions on Lukoil.

Source: Reuters via Investing.com