The deal, which will value the combined company at around CA$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. (Source: Secure Energy Services Inc.)
Canada’s Secure Energy Services Inc. said on March 9 it would buy waste management services firm Tervita Corp. in an all-stock deal valued at CA$478 million (US$379.5 million), the latest consolidation in the country’s oil sector.
The deal, which will value the combined company at around CA$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 CA$4.13 per Tervita share, the deal values the industrial waste management firm at a 10.7% discount to its closing price of CA$4.63 on March 8.
(US$1 = 1.2596 Canadian dollars)
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