Canadian Manufacturing

Glencore Xstrata buys Canadian oil exploration firm for $1.47B

Caracal Energy Inc. focused on oil and gas exploration in African country of Chad

GENEVA—Swiss-based commodities giant Glencore Xstrata Plc says it is buying oil exploration firm Caracal Energy Inc. for about $1.47-billion in cash.

Glencore says it has reached an agreement to buy all outstanding Caracal shares for roughly $10.09 each, a 61 per cent premium on the Canadian-based firm’s stock price Friday.

The two companies announced the deal a day after Glencore said it was selling its Las Bambas copper mine project in Peru to a Chinese consortium for US$5.85-billion in cash.

Caracal is focused on oil and gas exploration in the African country of Chad.

As a result of the Glencore deal, Caracal said it would pay $9.25-million to terminate a planned merger with Calgary-based TransGlobe Energy Corp.

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