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.

To read the entire article on International Herald Tribute, click here.