BP PLC (LSE:BP.) and Abu Dhabi National Oil Company have made a takeover offer to take Tel Aviv-listed gas producer NewMed Energy private.
The giant oil companies confirmed a non-binding approach to acquire the free float and a partial acquisition of the stake owed by Israel’s Delek Group, which would result in BP and ADNOC holding 50% of NewMed Energy.
In a statement BP said that, along with ADNOC, it intended to form a new joint venture that will be focused on natural gas development in international areas of mutual interest including the East Mediterranean.
When completed, this would strengthen the broader strategic partnership between the United Arab Emirates state oil company and BP across oil and gas, hydrogen and carbon capture and storage technology and would deepen the pair’s long-standing relationship, the statement said.
“This proposed transaction is consistent with BP’s stated strategy and financial frame including current guidance for capital expenditure,” BP said.
The two companies intend to explore a range of mechanisms for the formation and potential further expansion of their new partnership.
NewMed Energy said the offer price is 12.05 Israeli shekel per share. This would value the 50% stake at around US$2bn.