Glencore to buy Chad oil firm Caracal for $1.3 bln

LONDON, April 14 Mon Apr 14, 2014 7:56am EDT

Related Topics

LONDON, April 14 (Reuters) - Mining company Glencore Xstrata said it agreed to buy Chad-focused oil company Caracal Energy for about 800 million pounds ($1.3 billion), in a deal which will involve Caracal abandoning a merger with Canada's TransGlobe Energy.

Glencore's 550 pence per share agreed bid for Caracal represents a 61 percent premium to Caracal's closing share price on Friday.

Caracal and Glencore have been partners in an oil field in Chad since 2012 and Glencore has paid TransGlobe a break-fee of $9.25 million under the terms of the previous deal.

Shares in Caracal traded up 58 percent after the announcement on Monday to 543.25 pence.

($1 = 0.5980 British Pounds) (Reporting by Sarah Young; editing by Paul Sandle)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.