Glencore buys oil-explorer Caracal for $1.35B

Published on NewsOK Modified: April 14, 2014 at 11:01 am •  Published: April 14, 2014
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GENEVA (AP) — Swiss-based commodities giant Glencore Xstrata Plc says it is buying oil exploration firm Caracal Energy Inc. for about 800 million pounds ($1.35 billion) in cash.

Glencore says it has reached an agreement to buy all outstanding Caracal shares for 5.50 pounds each, a 61 percent premium on the Canadian-based firm's stock price Friday.

The two companies announced the deal Monday, a day after Glencore said it was selling its Las Bambas copper mine project in Peru to a Chinese consortium for $5.85 billion in cash.

Caracal is focused on oil and gas exploration in the African country of Chad.

As a result of the Glencore deal, Caracal said it would pay $9.25 million to terminate a planned merger with Calgary-based TransGlobe Energy Corporation.