Glencore buys Caracal Energy

Mining company Glencore Xstrata said it agreed to buy Chad-focused oil company Caracal Energy (CRCL.L) for about 800 million pounds, in a deal which will involve Caracal abandoning a merger with Canada’s TransGlobe Energy.

Glencore’s 550 pence per share agreed bid for Caracal represents a 61 percent premium to Caracal’s closing share price on Friday.

Caracal and Glencore have been partners in an oil field in Chad since 2012 and Glencore has paid TransGlobe a break-fee of $9.25 million (5.53 million pounds) under the terms of the previous deal.

Shares in Caracal traded up 58 percent after the announcement on Monday to 543.25 pence.

.Reuters