Shares of Canadian oil and gas producer Talisman Energy Inc. skyrocketed over 48 percent in premarket trading Tuesday after Spanish oil company Repsol SA agreed to buy the company for $8.3 billion, or $8 per share in cash. The total deal is valued at $13 billion, including Talisman debt.
Calgary, Alberta-based company Talisman Energy, which takes part in the exploration, development, production, transportation and marketing of crude oil, natural gas and natural gas liquids, operates in three main areas, including North America, Colombia and Southeast Asia. Repsol, which engages in the exploration, development and production of crude oil and natural gas, said it would take on $4.7 billion of Talisman's debt as part of the deal. The Madrid-based company operates in more than 30 countries in North America, Europe, Asia, Africa and Oceania.
The combined entity will create an exploration and production company that will produce over 680 million barrels of oil equivalent per day, have refining capacity of 1 million barrels of oil equivalent per day and have a presence in over 50 countries with 27,000 employees, Talisman Energy and Repsol executives said in a statement.
The acquisition, which is subject to regulatory approvals, is expected to close in the second quarter of 2015.
Following the announcement, shares of Talisman Energy soared 48.83 percent in premarket trading Tuesday, to $7.60, on the New York Stock Exchange. Meanwhile, shares of Repsol, which trades on Spain's BME Stock Exchange, fell 3.79 percent, to 15.10 euros.