Canada's Secure Energy to buy Tervita as oil deals speed up
- The deal, which will value the combined company at around C$2.3 billion, comes as oil and gas companies seek to benefit from a recent run-up in crude oil prices while keeping a tight leash on costs.
- Secure, which operates a network of crude processing and storage plants, oil and water pipeline and crude-by-rail terminals, said it will pay 1.2757 of its shares for each Tervita share held.
Canada's Secure Energy Services Inc said on Tuesday it would buy waste management services firm Tervita Corp in an all-stock deal valued at C$478 million ($379.5 million), the latest consolidation in the country's oil sector.
The deal, which will value the combined company at around C$2.3 billion, comes as oil and gas companies seek to benefit from a recent run-up in crude oil prices while keeping a tight leash on costs.
Secure, which operates a network of crude processing and storage plants, oil and water pipeline and crude-by-rail terminals, said it will pay 1.2757 of its shares for each Tervita share held.
At the implied price of C$4.13 per Tervita share, the deal values the industrial waste management firm at a 10.7% discount to its Monday closing price of C$4.63.
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