Skip to content
Subscriber Only
Markets
Deals

Vermilion to Buy Spartan Energy for $860 Million in Stock

  • Deal comes amid pipeline bottlenecks, low domestic oil prices
  • ‘The company clearly sees good value in Canada’ analyst says
Bakken Turns Oasis Into Target As Fracking Costs Slide

Photographer: Matthew Staver/Bloomberg

Updated on

Vermilion Energy Inc. agreed to buy Spartan Energy Corp. for about C$1.08 billion ($860 million) in stock, adding to its production and acreage in southeast Saskatchewan in the largest oil and gas company takeover in Canada this year.

Spartan holders will get 0.1476 of a Vermilion share for each Spartan share, Vermilion said in statement Monday. That represents a premium of 5 percent, based on Friday’s closing prices. Vermilion also will assume about C$175 million of debt. The company expects the transaction to close on or about June 15.