Mergers and Acquisitions Recap: BP Sells Gulf ASSETS, Transocean Sells RIGS
BP (NYSE:BP) was said to be in talks early Monday to divest assets in the Gulf of Mexico oil fields to Plains Exploration & Production Company (NYSE:PXP) for a price of $7 billion, which would have exceeded the latter’s market cap of $5.2 billion. Such a transaction would be a part of the seller’s efforts to raise cash to pay for the residuals from the 2010 oil spill, and thus far, BP has agreed to sell some $26.5 billion worth of the $38 billion in assets that it has earmarked for divestiture. Later, analysts say BP still got a good price for the Gulf oil fields that it sold to Plains Exploration for $5.5 billion, $1.5 billion less than the amount first asked. RBC, which had valued the assets at about $2.2 billion, remarked that the final prices was “Significantly higher” than expected.
Transocean Ltd. (NYSE:RIG) will sell 38 shallow-water drilling rigs to private equity backed Shelf Drilling International, for the amount of $1.05 billion, which is broken down into $855 million in cash and $195 million of seller financing in the form of preference shares. After completion, Transocean will take a third quarter impairment charge.
Heckmann Corporation (NYSE:HEK) will purchase a majority stake in Appalachian Water Services for an unreported price, as it enlarges its operations in water treatment in the Marcellus Shale area.
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