Under the deal, Repsol will acquire all of the outstanding preferred shares of Talisman for a purchase price of C$25 per preference share plus accrued and unpaid dividends to the date of closing.
In addition to adding significant exploration portfolio and high-quality productive assets, the deal is expected to enhance Repsol´s competitiveness, increase and balance its exploration portfolio, strengthen the upstream business unit and provide a strong growth platform.
With the acquisition, Repsol Group’s output would increase by 76% to 680,000 barrels of oil equivalent per day, and will boost reserves by 55% to 2,353 billion barrels of oil equivalent.
Repsol Chairman Antonio Brufau said: "This is a transformative and exciting deal which will make us one of the world’s most significant players and which will allow us to grow as a company and reinforce Repsol as a solid and competitive integrated player."
"Talisman is an excellent company which will add its experience and proven track record in production assets that will add to that of Repsol in deep water exploration. This will significantly boost joint development."
In addition to adding significant exploration portfolio and high-quality productive assets, the deal is expected to enhance Repsol´s competitiveness, increase and balance its exploration portfolio, strengthen the upstream business unit and provide a strong growth platform.
The transaction, which will be completed with a Plan of Arrangement, is subject to the approval of the Canadian courts and Talisman shareholders and is planned to complete in mid-2015.
Repsol chairman Antonio Brufau said, "Our combination with Talisman allows us to align our highly complementary portfolios of upstream assets to create a truly global company well-positioned to grow production and reserves."
