Spanish energy giant Repsol SA is reportedly exploring a reverse merger for its upstream exploration and production unit. This unit carries an estimated valuation of $19 billion. U.S. energy producer APA is among potential partners under consideration for this strategic move.
Bloomberg News published this information on Thursday, citing individuals familiar with the ongoing discussions. Following the report, shares of APA saw a notable increase, rising 7.1% to trade at $25.59.
Merger Considerations Emerge
Repsol, Spain’s largest refinery operator, is reviewing options for its substantial upstream division. A reverse merger could significantly restructure this segment. Repsol’s exploration of this option signals a strategic evaluation of its core assets.
APA Identified as Potential Partner
Discussions reportedly include U.S. energy producer APA. APA operates as an independent energy company. Its potential involvement suggests strategic alignment. The exact role APA might play remains part of ongoing deliberations.
Market Responds Swiftly
The prospect of APA’s involvement generated a quick market reaction. Investors responded positively to the potential deal. APA’s stock price climbed sharply on Thursday. The 7.1% gain pushed its shares to $25.59, reflecting investor optimism.
Report Sourced from Informed Individuals
Bloomberg News first reported these considerations. The financial news service attributed its information to individuals with direct knowledge of the discussions. These sources requested anonymity. The report highlights the preliminary nature of these potential merger talks.
Repsol’s consideration of a reverse merger for its $19 billion upstream unit marks a key strategic evaluation. The potential involvement of APA has already drawn market attention. The energy sector will likely monitor further developments.
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