Industry giants Shell and BG are zeroing in on their mega-merger.
Cameron said its shareholders have approved a bid by oil services giant Schlumberger to take over the company in a deal worth $12.7billion. The transaction is expected to be completed by next year.
The boss of Simmons & Co said he expects to see more mergers and acquisitions in the next year, as he spoke about his own company's $139million takeover by Piper Jaffray. The companies announced in a joint statement yesterday they had signed a deal for the merger after detailed talks intensified in the past four weeks. Speaking exclusively to Energy Voice, Colin Welsh, who heads up Simmons business in the eastern hemisphere said he also expected the oil price to pick up.
Apache Corp.’s rejection of a takeover offer from Anadarko Petroleum Corp. leaves both energy explorers vulnerable to acquisition. Anadarko, the third-largest US natural gas producer, said it withdrew an all-stock offer after Apache refused to engage in substantive talks. Apache, one of the biggest leaseholders in the largest US shale play, slumped 7.3 percent, the most in nearly a year. Anadarko dropped 3.8 percent, wiping out $1.2 billion in market value. For Anadarko, an acquisition of the $20 billion company would have served as a defense from any potential suitors. Major oil companies including Royal Dutch Shell Plc and Exxon Mobil Corp., which have a half-trillion dollars in cash and shares to fund takeovers, are seen as likely to approach beaten-down US independent producers.
The world’s six largest publicly traded oil producers have more than a half-trillion dollars in stock and cash to snap up rival explorers. Exxon Mobil Corp. tops the list with a total of $320 billion for potential acquisitions. Chevron is next with $65 billion in cash and its own shares tucked away, followed by BP Plc with $53 billion, according to data from corporate filings compiled by Bloomberg. Merger speculation was running high after Anadarko Petroleum Corp. said Wednesday it withdrew an offer to buy Apache Corp. for an undisclosed amount. Apache rebuffed the unsolicited offer and wouldn’t provide access to internal financial data, Anadarko said. Both companies are now takeover targets, John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, said by phone.
Anadarko Petroleum Corp. approached Apache Corp. about a combination that would be the largest for an independent U.S. oil and gas producer this year, according to people familiar with the matter.
Woodside Petroleum Ltd. Chief Executive Officer Peter Coleman sees more time, not money, as the key to securing a takeover of Oil Search Ltd. “You don’t always have to sweeten deals,” Coleman said in an interview with Bloomberg TV’s Angie Lau on Monday. “What happens is that over time, expectations come together. You’re starting to see some M&A activity in Australia post the approach we made to Oil Search and you can see that peoples’ view of the world is starting to get a little closer.”
Halliburton Co.’s proposed purchase of Baker Hughes Inc. faces further regulatory scrutiny after Australia’s competition watchdog raised concerns that the $34.6 billion deal would shrink the number of suppliers for oilfield goods and services, particularly for offshore drilling. The Australian Competition & Consumer Commission delayed its decision until Dec. 17 and asked for further comments from market participants, according to a statement from the regulator on Friday. The businesses have significant competitive advantages in providing services as they benefit from extensive product ranges, economies of scale and scope as well as industry experience, the ACCC said. Halliburton and Baker Hughes last month flagged the sale of additional business units in an effort to satisfy antitrust concerns over the takeover. The world’s second- and third- largest oilfield service companies have been seeking to complete the deal by either Dec. 15, or 30 days after both certify compliance with US Justice Department requests, whichever is later.
Nostrum Oil & Gas’ takeover of Tethys Petroleum came to a grinding halt, after a last minute shareholder block.
Concern by investors that Shell will not complete its planned acquisition of BG Group has been exaggerated, according to the oil major’s chief executive. According to reports in the Financial Time, Ben Van Beurden told the paper that the two companies’ share prices had been “knocked about” by recent upheaval in stock markets. Van Beurden said both companies’ valuations were driven by “risk aversion at the moment, rather than careful considered pricing.”
A meeting to discuss Woodside Petroleum Ltd.’s $8 billion takeover bid for Oil Search Ltd. was called off amid speculation that the offer for the Papua New Guinea- focused explorer is too low to succeed. The meeting scheduled for Sunday was postponed at Oil Search’s request, according to a statement from Woodside, the Australian oil producer. Oil Search is expected to reject Woodside’s bid as early as Monday, the Australian Financial Review reported Sunday, without citing sources.
Escape Business Technologies is under new ownership today after a Norwegian takeover of the Aberdeen-based information technology company. It is the second multimillion-pound acquisition of a business in or near the Granite City in as many days, following Proserv’s move to buy Nautronix on Monday. Cegal, headquartered in Stavanger, will announce its swoop on Escape to the Norwegian stock exchange this morning.
Schlumberger has taken over Cameron in a $14.8billion deal. The company's chief executive said the move would create "new and broader" opportunities for Schlumberger in the current low oil market. Schlumberger told investors in June last year there needed to be a transformation in the technology delivered in order to outperform the markets.
San Leon Energy has confirmed speculation of a possible takeover. The Irish oil and gas company was forced to make a statement after Irish press reported the firm was “being targeted for a takeover”.
A takeover bid by the Emirates National Oil Company (ENOC) for Dragon Oil has almost been completed. The company said its shares will be delisted from both the Dublin and London traded exchanges next month.
Viper Subsea Technology said innovative oifield products and services developed in Aberdeen and Portishead, near Bristol, were poised for accelerated growth and global reach after a US firm acquired a minority stake. Houston-based Oceaneering International Services, whose global operations include regional headquarters in Dyce, Aberdeen, completed the deal on August 7 for an undisclosed sum. The acquisition is not expected to lead to any change in Viper’s workforce or product and service development.
Tethys Petroleum said it has been approached with a renewed offer from Nostrum Oil & Gas. The move follows the announcement that a $47.7million financing with AGR Energy holdings and related clawback of shares by Pope Asset Management will now not proceed. The latest potential offer from Nostrum Oil & Gas has been made for the entire issued and to be issued share capital of Tethys.
Halliburton Co.’s takeover of Baker Hughes Inc. is facing resistance from US enforcement officials who are concerned the tie-up could hurt competition, according to a person familiar with the matter. Justice Department lawyers reviewing the proposed $34.6 billion transaction are worried about consolidation in the industry from combining the No. 2 and No. 3 firms, said the person, who asked not to be identified because the review is confidential. Though Halliburton has proposed selling some assets to other companies, government officials aren’t convinced its plan would restore sufficient competition, the person said.
The pipeline unit of refiner Marathon Petroleum Corp. plans to buy MarkWest Energy Partners LP, the second-largest U.S. processor of natural gas, for about $15.8 billion in stock and cash. The transaction represents a major expansion into pipelines and processing for Marathon, which created its pipeline unit MPLX LP in 2012, the year after it was spun out of producer Marathon Oil Corp. The refiner has more than doubled in value since then as processors reap the rewards from low crude prices brought on by the shale revolution.
Nostrum Oil & Gas has made a further approach to the board of Tethys in a takeover offer for the company’s entire share capital. The move comes after Tethys made a recent announcement regarding a strategic collaboration with and financing by AGR Energy. Nostrum said it was prepared to provide interim funding to Tethys in connection with the potential offer.
Technip SA (TEC), Europe’s biggest oil-services company, said it plans to expand in upstream businesses even after a bid to buy French seismic surveyor CGG SA (CGG) failed on price and industrial considerations. “We have turned a page on this subject,” Technip Chief Executive Officer Thierry Pilenko said. The company said in a statement on Sunday evening that it doesn’t intend to make an offer for CGG. CGG slumped 33% at 9:37 a.m. in Paris trading, while Technip climbed 8%.