“There is no assurance that any transaction will be agreed,” the Calgary-based oil producer said in a statement today. Repsol’s interest in bidding for Talisman was first reported yesterday by Bloomberg News.
Repsol Chief Financial Officer Miguel Martinez said in May that the company, with a market value of 24.9 billion euros ($33.5 billion), is looking for targets that offer a “growth platform” and are based in more stable countries than most of its current overseas operations. The Madrid-based company’s biggest purchase so far, the more than $15 billion acquisition of YPF SA in 1999, ended with the Argentine government’s seizure of a 51 percent stake in the company in 2012.
Talisman’s U.S. assets offer Repsol an opportunity to gain a foothold in the oil-rich Eagle Ford basin in Texas, Richard Griffith, an analyst for Canacord Genuity Corp., wrote in an note to clients today before the announcement. Its North Sea assets will also appeal, he wrote.
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