Carlyle ends pursuit of Lukoil’s international assets

The U.S. investment firm is no longer actively pursuing a deal for the Russian oil producer’s overseas portfolio. The parties had earlier agreed on a purchase excluding assets in Kazakhstan.

A Carlyle Group spokesperson told Reuters that the fund was no longer actively pursuing a deal to acquire Lukoil’s international assets. The company declined to comment further. Reuters reported the development on October 9.

The parties had initially agreed on a deal on January 29. It covered Lukoil’s overseas portfolio except for assets in Kazakhstan. Reuters said the portfolio had initially been valued at about $22 billion and had drawn interest from at least 12 companies.

Funds Mubadala, XRG and IHC based in Abu Dhabi, as well as the U.S. Development Finance Corporation, were in talks about potentially joining the deal alongside Carlyle, Reuters reported, citing people familiar with the discussions.

Carlyle’s withdrawal means the fund is no longer treating the purchase as an active transaction. Lukoil subsidiary filings cited in the original report said discussions with other potential buyers were under way and that management expected a share-purchase agreement. Reuters also reported interest from Exxon Mobil and other market participants.