Weekly MENA Newsletter will be delivered to your email in PDF format every Friday (52 Issues per Year).
Spanish oil and gas firm Repsol is to buy Canadian shale-focused group Talisman Energy in an agreed takeover worth nearly $13bn.
Repsol will pay $8.3bn for all the shares in Talisman and will assume $4.7bn in debt. Talisman is a shale-focused firm with half of its 280,000-290,000 barrels of oil equivalent per day (boe/d) production in 2014 sourced from its North American operations.
The deal will see Repsol pay $8 per share in cash, an eye-watering 103% premium to Talisman’s 5 December share price, the day before press reports indicated that a deal was imminent. The depressed price reflected the difficult oil market and the fact that Talisman is so heavily invested in shale developments. Since American benchmark crude grade, WTI, flirted with levels below $55/B this week, the premium Repsol is set to pay for Talisman seems a risky bet on oil price recovery.
DON'T HAVE AN ACCOUNT?
NEED TO UPGRADE YOUR CURRENT SUBSCRIPTION?
By upgrading your Print or Digital subscription you will gain access to the MEES Archives Database with past articles and data dating back from 1984.UPGRADE