Samsung C&T Corp., the trading arm of Samsung Group, agreed to buy Parallel Petroleum Corp. from Apollo Global Management LLC.
Samsung C&T will purchase a 90 percent stake of Parallel Petroleum and Korea National Oil Corp. will buy the rest, according to a regulatory filing made in Seoul today.
The companies may pay about $780 million for Parallel Petroleum, said three people with knowledge of the matter who declined to be identified. The regulatory filing did not disclose the price.
At $780 million, the deal would mark the biggest overseas energy takeover by a South Korean company this year, data compiled by Bloomberg show. State-owned KNOC bought a 95 percent stake in Altius Holdings Inc. for $515 million in March, and has said it needs to buy more energy assets to meet oil production targets set by the government.
Rising prices of raw materials are spurring South Korean companies to boost investments in commodities ranging from oil and gas to copper, as they’re competing for supplies with China and India. Samsung C&T aims to boost revenue from its natural resources, energy and environment business to 46 percent of overall sales by 2015 from 31 percent in 2010, according to an investor relations presentation on its website.
Samsung C&T said in September it won a 658.8 billion won ($578 million) order to build a power plant in the United Arab Emirates.