UK oil producer Burren Energy has agreed to a takeover bid by Italian firm Eni worth £1,736 million. Eni are buying the entire issued share capital of the company at a price of £12.30 per share in cash.

Eni made earlier bids for Burren at prices of £10.50 and £12.00 per share, both of which were rejected.

The directors of Burren energy, who have been advised by UBS throughout the negotiations, unanimously decided to recommend to shareholders that they accept what they consider a fair and reasonable bid by Eni.

The CEO of Eni, Paolo Scaroni said, We are very pleased to have agreed the terms of a recommended offer for Burren. The transaction is in line with our strategy and will increase our production in Congo. We will also gain a first foothold in Turkmenistan, a hydrocarbons rich country which has increasingly attractive growth potential.

Keith Henry, the Chairman of the Board of Burren said, The price achieved reflects the high quality and strategic nature of our business and assets today.

Burren was founded in 1994 by Finian O'Sullivan who still owns 3.4% of the firm, according to Reuters figures the bid price by Eni would value his shares at £59 billion.