Representative End User Clients
Representative Automation Clients
Representative Software Clients
Norway's Aker BP will buy the oil and gas business of Sweden's Lundin Energy, forming the second-largest listed petroleum firm on the Norwegian continental shelf.
The cash and stock transaction values the acquired assets at approximately 125 billion Norwegian crowns ($13.9 billion). The shares of Aker BP jumped by 6% by 1537 GMT while those of Lundin Energy rose 4%.
The transaction will be settled through a cash payment of $2.22 billion and a share consideration of 271.91 million new shares issued from Aker BP and distributed to the Lundin Energy AB shareholders.
The companies could realize synergies of some $200 million per year in the form of cost cuts and other operational synergies.
The combined firm has pumped an estimated 400,000 barrels of oil equivalent per day (boed) in 2021 and expects to increase this to 475,000 boed in 2023, the companies said. Production could dip to a level between 350,000-400,000 boed by 2026 before rising again to an estimated 525,000 boed in 2028 as more new fields come on stream and with additional upside potential, they added.
Closing of the Aker-Lundin deal, which depends on regulatory and shareholder approvals, is expected in the second quarter of 2022.
Aker ASA will own 21.2% of the merged firm, oil major BP will own 15.9%, while Lundin family company Nemesia will hold 14.4%.
($1 = 8.9705 Norwegian crowns)