By Christopher Bjork
MADRID--Repsol SA said Tuesday it has reached an agreement with
the board of directors of Talisman Energy Inc. to acquire the
Canadian oil company for US$8.3 billion, in a deal that will almost
double the Spanish company's oil output right away and boost its
potential for further expansion.
The deal has been unanimously approved and recommended by the
two boards, Madrid-based Repsol said early Monday. Calgary-based
Talisman separately confirmed the planned all-cash purchase.
Repsol is offering $8, or 9.33 Canadian dollars, for each
Talisman share, a 60% premium to the average price over the past
month, Talisman said.
Taking on Talisman's 2,809 employees would nearly double
Repsol's exploration and production staff. While the Spanish
company has a market value five times as big as Talisman's, it
remains a tiny competitor in oil production and for more than a
year has been shopping for an acquisition that would bolster its
production capacity.
The addition of Talisman will increase Repsol's output by 76%,
to 680,000 barrels of oil equivalent per day, and boost reserves by
55% to more than 2.3 billion barrels of oil equivalent, Repsol
said.
The purchase of Talisman is expected to close by mid-2015, the
Spanish company added
Write to Christopher Bjork at christopher.bjork@wsj.com
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