Noreco proposes merger with Det norske Oljeselskap
OSLO: Shares in Norwegian oil company Det norske Oljeselskap ASA rose more than 9 percent by midday Tuesday when smaller rival Noreco proposed a merger to create the Nordic country’s second largest offshore operator.
However, Det norske was quick to say that the timing was not right for the deal, because a new board of directors that took office Tuesday had not had time to learn the company.
The Norwegian Energy Company ASA, which operates under the name Noreco, proposed a share swap that would give current Det norske shareholders a controlling 52.5 ownership in a merged company.
“Our two companies are a great fit strategically. The timing is right to further develop the Norwegian oil industry,” said Noreco board chairman Lars Takla.