3R Petroleum Oleo e Fuel SA agreed to amass Enauta Participacoes SA in an all-stock deal, the most recent transfer in a wider consolidation of Brazil’s oil business.
Enauta holders will get 0.8092 share of 3R Petroleum for every of their shares within the transaction, based on a submitting Friday. Based mostly on Enauta’s shares excellent and 3R’s closing value Thursday, the deal is valued at about $1.2 billion. 3R will maintain 53% of the brand new firm, whereas Enauta’s shareholders will account for the remaining 47%.
3R shares rose as a lot as 3.8% in early buying and selling Friday. Enauta climbed as a lot as 1.7%.
As soon as the merger is concluded, Enauta will turn into a subsidiary of 3R, and its shares will now not be traded within the native inventory market. The deal is topic to approval by each firm’s shareholders and Brazilian regulators.
The information comes after each firms signed a memorandum of understanding in April to create a single, bigger entity. 3R was already contemplating a possible mixture with PetroReconcavo SA, one other Brazilian oil producer.