Neptune considers merger with its rival Harbour Energy

Neptune considers merger with its rival Harbour Energy

Bloomberg

Neptune Energy Group Ltd, the private equity-backed explorer, is considering options including a merger with Harbour Energy Plc that could create one of Europe’s largest independent oil and gas companies, people familiar with the matter said. Neptune, part-owned by Carlyle Group Inc and CVC Capital Partners, is working with an adviser as it studies a potential combination with London-listed Harbour, the people said. Any deal could value the combined group at $10 billion or more, the people said, asking not to be identified as the information is private. Harbour shares jumped as much as 7.2% in UK trading on Tuesday. They were up 2.9% at 2:32 pm in London, giving the company a market value of 3.6 billion pounds ($5 billion). Neptune is also considering other possibilities, including an initial public offering next year or an outright sale, the people said. A combination of Neptune and Harbour would unite two of the largest independent energy explorers with significant assets in the UK North Sea as well as emerging markets such as North Africa and Southeast Asia. Any transaction would add to the $264 billion of deals announced in the energy industry this year, according to data compiled by Bloomberg. Neptune