Eldar Saetre didn’t comment on Statoil’s deals strategy, but speculated more deals will follow Shell’s purchase of BG, Bloomberg said. Sellers’ high valuation expectations are problematic, he said.
Cheap money is chasing deals, with $8 billion in equity raises keeping companies alive while Shell’s purchase of BG Group has ‘rekindled M&A animal spirits.’
Royal Dutch Shell Plc hired Barclays Plc to arrange a 10 billion pound (US$15 billion) short-term bridge loan for the purchase of BG Group Plc, people told Bloomberg.
The purchased acreage, which is entirely undeveloped, represents a natural bolt-on to Gulfport's existing position in the shale play and translates to $12,700 per acre.
After Shell’s $70 billion deal, ExxonMobil and Chevron are in the hunt with several large U.S. E&Ps. But in the Permian Basin, the bid-ask spread remains too wide for deals.
Murray Energy Corp. will acquire 34% of Foresight Energy LP parent unit voting rights during $1.37 billion takeover, Bloomberg said. Without voting control, Murray won’t buy $600 million Foresight bonds.
Experts are divided on whether Shell’s transaction will jumpstart abysmal U.S. E&P deal flow or lack the punch to knock companies out of their uncomfortable zone.
Speculation of an Exxon-BP combination surfaced last year after oil prices declined, increasing big mergers’ appeal, Bloomberg said. Now, M&A is in the wake of the Shell-BG acquisition news.
Shell, already one of the world’s largest oil and gas companies, would strengthen its LNG portfolio and gain access to premier offshore Brazil deepwater oil in a mega-merger.
The merger would unite the U.K.’s first- and third-largest natural gas producers, Bloomberg said. The companies are still in talks, and the matter is private.
Special meetings determined the shareholders’ votes. The merger of Halliburton and Baker Hughes is scheduled to close in the second half of 2015, subject to regulatory approvals.
C&J Energy Services Ltd. is led by current C&J management and will be based out of Bermuda. The transaction was originally announced June 25, 2014.