Kosmos Energy ends talks to acquire Tullow Oil

Kosmos Energy has announced it is no longer interested in acquiring all the shares of Tullow Oil Plc.

This news comes just weeks after Tullow confirmed preliminary discussions regarding a possible all-share offer from Kosmos.   

“Kosmos Energy can now confirm that it does not intend to make a firm offer for Tullow at this time,” a statement from Kosmos revealed. This decision frees them from the requirements outlined in Rule 2.8 of the UK Takeover Code, which governs procedures for public mergers and acquisitions.

The news comes as a blow to Tullow, which has been facing financial challenges. Industry analysts initially believed a merger with Kosmos could have helped turn around Tullow’s fortunes.

Tullow remains confident in its standalone business model, according to a statement issued by its board. They plan to focus on optimizing their capital structure and addressing existing debt maturities.

Finance Minister to present mini-budget today: MPs share expectations

The announcement has had a contrasting impact on the share prices of both companies. Kosmos Energy’s share price has jumped by 15% following the news. Industry watchers believe this reflects market reaction to a potential consolidation within the oil and gas sector that ultimately did not materialize. This move may also allow Kosmos to focus on its existing operations and growth strategies.

Conversely, Tullow Oil’s share price dropped by 8.5% on December 13th, the day they announced preliminary talks with Kosmos. Following Kosmos’ decision to pull out, the share price is likely to experience further volatility.

This news underscores the dynamic nature of mergers and acquisitions within the oil and gas industry. While initial discussions may show promise, various factors can ultimately lead to the termination of potential deals.

Ghana’s Producer Price Inflation sees significant decline in November 2024

The post Kosmos Energy ends talks to acquire Tullow Oil first appeared on 3News.

Read Full Story