MADRID, Dec. 16 (UPI) -- An $8.3 billion deal to acquire Canadian energy company Talisman catapults Spain's Repsol to the top of the global heap, its top executive said Tuesday.
"This is a transformative and exciting deal, which will make us one of the world's most significant players," Repsol Chairman Antonio Brufau said in a statement.
Repsol adds what it said was high-quality and productive assets in North America to its global portfolio. Talisman was also a stakeholder in South-East Asia, Latin American and in Scandinavian basins, which means output from Repsol will increase by 76 percent to 680,000 barrels of oil equivalent per day.
The Spanish energy company through the deal becomes a player in more than 50 countries and positions itself as among the 15 largest private oil and gas companies in the world.
Talisman Chairman Chuck Williamson said the benefits to shareholders will be immediate.
"The deal underscores Repsol's strong belief in the high quality portfolio that Talisman has worked hard to develop," he said in a separate statement.
North America already accounts for 10 percent of Repsol's production and the combined company through the merger will designate $15 billion, or 30 percent of its capital, to the region.
North American oil production is skewing markets toward the supply side, with the United States alone producing more than 9 million barrels per day, largely because of the increase from shale basins.
Shares in Repsol tumbled 2 percent in pre-market trading Tuesday to $19.44, while Talisman stock soared more than 19 percent to $5.12. Repsol said it based its offer on Talisman shares at $8.
The Spanish company said it financed the acquisition in part from the $6.3 billion recovered from the expropriation of YPF.
Repsol in May completed the sale of its assets in Argentina to JP Morgan Securities including the bonds it received as compensation for the expropriation of its 51 percent stake in YPF.
The companies aim to complete the transaction in the middle of next year. Repsol said it would continue to rely on local talent to oversee operations from a Calgary base.