Mining company Glencore Xstrata has agreed to purchase Chad-focused oil company Caracal Energy for about 800 million pounds ($1.3 billion), a deal that will allow the commodity giant to expand upstream in the oil sector.The sale puts an end to Caracal's proposed merger with Canada's TransGlobe Energy Corporation.Swiss-based commodity producer and trader Glencore agreed to pay 550 pence per share for Caracal, which has been its partner in Chad since 2012, the two companies said in a joint statement put out by Glencore on Monday. The price represents a 61 percent premium to Caracal's closing share price on Friday.Caracal said it had terminated the proposed merger with TransGlobe and had paid a break-fee of $9.25 million to the Canadian company for abandoning the deal, the statement said.
TransGlobe Energy Corporation (TransGlobe) is an independent international upstream oil and gas company. Shares of TGL traded higher by 3.55% or $0.28/share to $8.17. In the past year, the shares have traded as low as $5.82 and as high as $10.09. On average, 297084 shares of TGL.TO exchange hands on a given day and today's volume is recorded at 179457.
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