Aker BP – Lundin Merger Becomes Formal

Norwegian oil and gas company Aker BP has completed the acquisition of Lundin Energy’s oil and gas business, creating the largest listed E&P company focused exclusively on the Norwegian Continental Shelf (NCS).

Back in December 2021, Aker BP agreed to acquire Lundin Energy’s oil and gas business, and by mid-February 2022, the two companies signed a merger plan, aiming to close the combination in mid-2022.

The transaction will be settled through a cash consideration of $2.22 billion and a share consideration of 271.91 million new shares issued from Aker BP and distributed to the Lundin Energy shareholders. The cash and stock transaction values the acquired assets at approximately $14 billion.

Aker BP said that the creditor notice periods for the merger expired on June 7, 2022, under the Norwegian Public Limited Liability Companies Act and the Swedish Companies Act, without any creditors objecting.

The Swedish Companies Registration Office and the Norwegian Register of Business Enterprises have issued their respective certificates confirming that the part of the merger that is governed by Swedish law and Norwegian law, respectively, has taken place in the prescribed manner.

Furthermore, the Lex Asea distribution of all shares has now been completed by Lundin Energy. As a result, the boards of directors of Aker BP and Lundin have resolved to complete the merger by final registration of completion in the Norwegian Register of Business Enterprises after the close of trading on the Oslo Stock Exchange today, Thursday, June 30, 2022.

As a merger consideration, Lundin shareholders will receive approximately $7.76 plus 0.95098 shares in Aker BP, for each share in Lundin outstanding as of the completion of the merger.

The merged company will be positioned as the undisputed number two on the NCS, with a combined oil and gas production of above 400,000 barrels of oil equivalents per day and a resource base estimated at 2.7 billion barrels of oil equivalents.

Aker BP is now owned by Aker (21.2 percent), BP (15.9 percent), Nemesia (14.4 percent), and other Aker BP and Lundin Energy shareholders (48.6 percent).

Aker BP’s executive management team will run the combined company. Lundin’s executive management team will remain available to the combined company for three months after the completion of the transaction to ensure an orderly transition. All personnel of Lundin Energy’s oil and gas assets in Norway will remain employed by Aker BP.

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