Baytex Energy and Raging River Exploration announced Monday, June 18, that the two Calgary-based oil and gas producers are merging in an all-stock deal. Under the terms of the transaction, Raging River shareholders will receive 1.36 Baytex shares for each share held. With 315 million shares expected to be issued in the process, the deal has an equity value of US$1.6 billion.
The announcement comes more than a year after Raging River disclosed it had retained GMP Securities as an adviser on “potential business alternatives.”
“This combination creates a diversified, well-capitalized oil producer that has an impressive suite of high quality producing assets,” Raging River CEO Neil Roszell said in a release.
“The merger creates a company with world class assets and a strong balance sheet while retaining substantial torque to higher crude oil prices,” Baytex CEO Edward LaFehr said in a release.
“If you’re a Raging River shareholder, I’m not quite sure you’re enamoured by this transaction, especially the share price reaction,” said financial advisory Raymond James analyst, Jeremy McCrea, adding that the deal worsened Raging River’s balance sheet.
Full Content: Financial Post
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
EU Conducts First-Ever Raids on a Company Under Foreign Subsidies Regulation
Apr 23, 2024 by
CPI
FTC Moves to Ban Non-Compete Agreements, Aiming to Boost Labor Mobility
Apr 23, 2024 by
CPI
Federal Judge Nods at $418M Deal in Real Estate Antitrust Suit
Apr 23, 2024 by
CPI
Mexican Watchdog Probes Amazon and Mercado Libre Over Loyalty Bundles
Apr 23, 2024 by
CPI
Competition Commission of India to Probe AI Landscape for Competition
Apr 23, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI