As reported in the Globe and Mail, Canadian oil and gas firm Talisman Energy has been acquired by Spanish energy giant Repsol S.A. in one of the year’s largest industry deals. Repsol will pay $8.3 billion at $8 per share and assume Talisman’s debt, for a total value of approximately $13 billion.
Talisman, headquartered in Calgary, has a diverse portfolio of international assets that made it an attractive object for Repsol, which has been eyeing the company in recent months. With the ongoing drop in oil prices, Talisman had been seeking to divest holdings and reduce debt, making Repsol’s latest approach attractive.
Some analysts interpret the move as an indication Repsol is optimistic about the recovery of oil prices. Talisman’s share price has risen considerably since the announcement of the deal, which is expected to be completed in mid-2015.