How Will the Purchase of Talisman by Repsol Affect Canada's Economy?

By Mana Tulberg

Read the latest edition of Business Review Canada!

Canada’s fifth largest independent oil and gas producer, Talisman Energy Inc., has accepted a $15.1 billion Cdn ($13 billion US) acquisition by the Spanish energy giant Repsol.  The Spanish company has accepted to also take on $5.48 billion Cdn ($4.7 billion US) of Talisman’s debt.

You May Also Enjoy: Many of Canada's Billion Dollar Companies From Energy Sector

Taking on Talisman’s 2,809 employees will nearly double Repsol’s exploration and production staff.  The combined company will be amongst the 15 largest privately owned oil and gas companies in the world.  With the Talisman’s board unanimous approval of the deal, the transaction’s completion is now subject to the approval of Talisman shareholders and the Canadian court. Shareholders are to vote on the offer in February and the transaction is expected to be complete in mid-2015.

So how does this acquisition affect local economy?

Repsol plans to retain many of Talisman’s employees, particularly those with expertise in areas like offshore oil exploration and operations.  The Spanish company plans on making Calgary one of the largest corporate centers outside of Spain therefor, creating new employment and opportunities.

Repsol chairman Antonio Brufau said "Repsol has the track record and financial flexibility to accelerate the development of Talisman's oil and gas assets, which will provide tangible and immediate benefits for Canada and create meaningful opportunities for employees, while retaining Talisman's talent in Canada”.

Repsol has been an active investor in Canada with exploration activity offshore East Coast and is a major partner in the Canaport LNG facility located in Saint John, New Brunswick.  The company has helped boost the local economy and has increased Saint John’s position as a vital center for energy.

Let's Connect!

 

Share

Featured Articles

How Elon Musk pulled off a $44bn hostile takeover of Twitter

As the world’s richest man, Elon Musk, takes over tech giant Twitter, we highlight the timeline that led to this titanic takeover

Amazon, Alphabet, Wells Fargo best workplaces, says LinkedIn

The top 50 workplaces to grow careers prioritise flexible work and tuition-support programs, as top-ranking firms Amazon and Alphabet prove, says LinkedIn

Top 10 women in technology in the US

These 10 women in tech are forging a path into bold areas of innovation and technological ambition, according to sister publication Technology Magazine

8 executive moves to crypto – from mainstream to startup

Technology & AI

Digital Twins tech ‘missing link’ in urban decarbonisation

Technology & AI

The Metaverse Foundry from Infosys is a business playground

Technology & AI