CNBC Arabia_ Gulf Keystone Petroleum, listed on the London Stock Exchange, announced its agreement to merge with Norway's ShaMaran Petroleum in a $601 million stock-for-stock transaction, establishing one of the largest oil production companies in the Kurdistan Region of Iraq.
Under the agreement, ShaMaran shareholders will receive approximately 0.075 shares of Gulf Keystone for each share they own in the Norwegian company.
Following the completion of the transaction, shareholders of both companies will own approximately equal stakes of 50% each in the new entity.
Gulf Keystone stated that it intends to transfer its primary listing to the Main Board of Euronext Oslo, while eventually terminating the listing of its shares on the London Stock Exchange.
The merger comes amid an accelerating pace of deals among oil companies operating in the Middle East, driven by rising crude prices linked to the conflict in the region.
In another transaction, London-listed Genel Energy is competing with Norway's DNO to acquire Capricorn Energy.
All four companies—Gulf Keystone, Genel Energy, DNO, and ShaMaran—are active in the oil-rich Kurdistan Region of Iraq.
