How to acquire a large Canadian publicly listed company, and what key considerations should be taken into account when acquiring a Canadian publicly listed company?

First, selection of the acquisition target. On the day Repsol announced its acquisition of Talisman, Repsol’s CEO Josu Jon Imaz made the following remarks: 'The transaction with Talisman is the result of Repsol’s analysis of over 100 companies and assets worldwide. From a regional perspective, Talisman emerged as the optimal choice—both for its globally diversified asset portfolio and its highly talented workforce. Repsol possesses the necessary capabilities and resources to unlock the full value of Talisman’s assets, and the synergies created by this transaction are expected to generate over $200 million annually—making it a win-win deal.' — For Chinese companies pursuing acquisitions of large Canadian publicly listed companies, overseas M&A must adhere to fundamental oil & gas industry acquisition principles: conducting extended analysis and research on prospective target companies or assets; assessing whether such an acquisition aligns with the acquirer’s own development strategy; evaluating whether it will generate operational synergies; and determining its economic feasibility. Second, selection of the acquisition method for Canadian publicly listed companies. Acquisitions of Canadian public companies generally fall into three categories: (1) Takeover bid (a public, market-based offer directly made to the target company’s shareholders); (2) Amalgamation (a merger whereby the buyer establishes a special-purpose Canadian corporation, which merges with the target company upon obtaining approval from a majority of the target’s shareholders); and (3) Plan of Arrangement (a negotiated arrangement whereby the buyer and target enter into an acquisition agreement, subject to approval by a majority of the target’s shareholders and court sanction; upon closing, the buyer’s Canadian special-purpose acquisition vehicle merges with the target). In the context of international M&A, takeover bids and plans of arrangement are most commonly used in practice. Under a takeover bid, if the bidder fails to acquire 90% of the target’s shares in the initial public offer—but secures more than 66.66%—a so-called 'second-step' process becomes necessary: convening a shareholder meeting to complete the 100% acquisition. By contrast, under a plan of arrangement, the entire acquisition can be completed in a single step. Moreover, takeover bids are subject to significantly more stringent securities regulatory requirements than plans of arrangement. Generally, in friendly transactions involving large public companies—i.e., where the target’s board supports the acquisition—the plan of arrangement is the predominant method employed. — For Chinese companies targeting large Canadian public companies, selecting the appropriate acquisition method requires first determining whether the transaction will be friendly or hostile. Plans of arrangement are unsuitable for hostile takeovers. In the absence of a 'poison pill' (i.e., a shareholder rights plan enabling the target to undertake equity restructuring or increase acquisition costs to deter hostile bids), takeover bids typically proceed faster than plans of arrangement. Second, the acquirer must assess whether it has confidence in securing over 90% of the target’s shares outright in the initial public offer; otherwise, it will need to pursue shareholder meeting approval (requiring at least 66.66% acceptance) to finalize the acquisition.

International oil & gas M&A activity continues to intensify—what will be the next hotspot?

Five Trends in International Oil & Gas M&A in 2024 In 2024, global oil & gas M&A activity is likely to exhibit the following trends. Trend One: The wave of mega- and large-scale oil & gas asset acquisitions will persist amid the broader global oil & gas M&A surge. Large transactions will continue dominating the international oil & gas M&A market in 2024, driven primarily by three factors: First, most major global oil & gas basins—including the U.S. Permian Basin—have already passed their production inflection points; low-cost drilling locations have been largely exhausted, and the marginal returns on large-scale exploration and development are rapidly diminishing. Consequently, international oil companies are shifting their production growth model toward acquiring existing oil & gas assets. Second, publicly listed international oil companies face mounting investor pressure to repurchase shares and distribute dividends—prompted by high interest-rate opportunity costs—and operate under strict investment discipline. Compared with capital-intensive, long-payback exploration and development projects, acquiring mature oil & gas assets offering immediate cash flow is more readily endorsed by investors. Third, as some European international oil companies encounter setbacks in their energy transition efforts, refocusing on core oil & gas operations has reemerged as a prevailing strategic trend among international oil companies. Trend Two: North America will remain a focal region for M&A. Since 2023, five of the top 20 private U.S. oil & gas producers have either been acquired or are currently undergoing acquisition. Since Q4 2023, the three highest-producing independent U.S. oil companies—Mewbourne Oil, Endeavor Energy, and CrownRock—have all been subject to acquisition rumors; notably, CrownRock’s acquisition by Occidental Petroleum has essentially been finalized. More importantly, since the shale oil & gas revolution, the United States has become the world’s largest oil & gas producer—yet global oil pricing power remains concentrated in OPEC+, led by Saudi Arabia. Facing long-term inflationary pressures stemming from global realignment and industrial chain relocation—as well as political pressures tied to the upcoming U.S. presidential election—the U.S. government seeks sustained low oil prices. Under these circumstances, consolidating numerous small domestic oil & gas producers and integrating national oil & gas production capacity will enhance industry concentration, thereby enabling a more unified voice in both the oil & gas market and price-setting arenas—further cementing the U.S. as a focal region for global oil & gas M&A in 2024. Additionally, the Middle East, Europe, and even Australia may also witness major oil & gas M&A transactions in 2024. Trend Three: Regional EV charging infrastructure assets face ongoing consolidation demand, and intensified competition among international oil companies for regional markets is driving increased numbers of mid- and small-scale M&A deals. The rapid growth of new-energy vehicles continues to draw international oil companies’ attention—and investment—into EV charging infrastructure and related service markets. In recent years, international oil companies have actively entered EV charging infrastructure service markets across Europe, the U.S., and China. Notably, European majors—including Shell, bp, and TotalEnergies—have significantly ramped up investments in China’s EV charging infrastructure service market. Leveraging their extensive retail fuel station networks and driven by energy transition imperatives, international oil companies are expected in 2024 to expand their global EV charging services business—via M&A and other means—progressing systematically from premium markets to mainstream markets and ultimately penetrating lower-tier markets.

Ovintiv to Buy Canada’s Logan Energy in Montney Expansion

16 hours ago

Ovintiv Inc. agreed to acquire Logan Energy Corp. for C$1.26 billion to expand its Montney formation operations, adding 266,000 net acres and 20,000 barrels per day. The deal is expected to close in early 2027, strengthening Ovintiv's position amid rising Canadian energy activity.

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Ovintiv to Buy Canada’s Logan Energy in Montney Expansion

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