The largest oil company in Spain, Repsol has set its sights on obtaining the Canadian energy concern Talisman and has begun working with JPMorgan Chase & Co on the strategy needed to obtain the attractive target, as the company finds itself flush with capital but lacking in strategic assets. A situation that Repsol will address by considering the purchase of large acquisitions in a move to reestablish growth for the oil company outside of its home market position in Europe.The Canadian energy giant Talisman, which is based in Calgary, is valued by the market at around $10.2 billion based on the company’s share’s closing price. The position as a possible takeover target is nothing new to the Canadian energy company with Talisman, previously the target of the billionaire investor Carl Icahn. Talisman is currently restructuring and seeking to divest itself of smaller assets to help reduce its corporate debt, while concentrating the bulk of its capital on a reduced number of core business assets.
“Repsol has been rather light on assets following the loss of its YPF stake and while cash rich, it has seemed more than a little hesitant to reinvest its capital anywhere that it could conceivably lose out again. Canada and Talisman are probably too good an opportunity for them to pass up given the inherent security they offer,” said James Aiguo, Director and Senior Partner at Harver Group
In May, the $34 billion Repsol’s CFO Miguel Martinez stated that the Spanish oil company is seeking acquisition targets that will give the company room to grow and are located in countries that are politically stable than those where most of the company’s overseas operations are currently located. Repsol's largest acquisition to date, was the purchase of the Argentinean YPF in 1999 in a deal worth in excess of $15 billion, a decision that later saw Repsol lose its stake with the Argentinean government’s seizure of a 51% stake in 2012.
“With Repsol having engaged advisors on this possible takeover, it’s safe to assume that this has left the drawing board and is currently being acted on. The stability and safety of the investment that Talisman offers to the once burnt Repsol may be too attractive to pass up and result in some very good prices being offered, at least so the shareholders of Talisman hope and this would seem a sound wish,” ended James Aiguo, Director and Senior Partner at Harver Group.
About Harver Group:
Harver Group was incorporated in 2003 with our head offices in Tokyo, Japan. We are a venture capital firm, investing in the early stages of companies with technological innovations, establishing partnership with companies that bring new disruptive technologies to the worldwide markets.
We provide funding for Mergers & Acquisitions, company takeovers, and assist in providing businesses with expansion capital, Harver Group source capital, which we subsequently invest in emerging growth companies, both from professionally managed funds and from individual investors within the private sector.
Harver Group ethical attitude is one that encourages self-empowerment, we maintain the same ethics when dealing with the management of a small individual portfolio to multi-national institutions, holding companies, high wealth portfolios and mutual funds; thus encompassing bi-lateral relationships between a number of different sectors, ensuring an ongoing successful partnership with a wide range of clientele.