Canada’s fifth largest independent oil and gas producer, Talisman Energy Inc., has accepted a $15.1 billion Cdn ($13 billion US) acquisition by the Spanish energy giant Repsol. The Spanish company has accepted to also take on $5.48 billion Cdn ($4.7 billion US) of Talisman’s debt.
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Taking on Talisman’s 2,809 employees will nearly double Repsol’s exploration and production staff. The combined company will be amongst the 15 largest privately owned oil and gas companies in the world. With the Talisman’s board unanimous approval of the deal, the transaction’s completion is now subject to the approval of Talisman shareholders and the Canadian court. Shareholders are to vote on the offer in February and the transaction is expected to be complete in mid-2015.
So how does this acquisition affect local economy?
Repsol plans to retain many of Talisman’s employees, particularly those with expertise in areas like offshore oil exploration and operations. The Spanish company plans on making Calgary one of the largest corporate centers outside of Spain therefor, creating new employment and opportunities.
Repsol chairman Antonio Brufau said "Repsol has the track record and financial flexibility to accelerate the development of Talisman's oil and gas assets, which will provide tangible and immediate benefits for Canada and create meaningful opportunities for employees, while retaining Talisman's talent in Canada”.
Repsol has been an active investor in Canada with exploration activity offshore East Coast and is a major partner in the Canaport LNG facility located in Saint John, New Brunswick. The company has helped boost the local economy and has increased Saint John’s position as a vital center for energy.