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.