Var Energi to buy BlueNord in $1.3B deal, creating Europe's biggest independent oil and gas firm

Var ‌Energi (VARRY) said Tuesday it agreed to acquire European rival BlueNord in a cash and stock deal valued at ~$1.3B, creating Europe's largest independent oil and gas producer.

Under the deal terms, BlueNord owners will receive 248.4M new Var Energi (VARRY) shares and 1.96B Norwegian crowns (~$203M) in cash, equating to 9.7153 shares in Var and ⁠76.83 crowns in cash for each share held in BlueNord.

On completion, BlueNord shareholders are expected to own ~9% of Var Energi (VARRY), while Italy's Eni (E) will remain the majority shareholder with a 57% stake.

Var Energi (VARRY) currently focuses on Norwegian oil and gas production, while BlueNord's assets are located ​on Denmark's continental shelf.

The combined company will have a long-term production target of ~​450K boe/day, with the BlueNord assets contributing ~45K boe/day and ~195M barrels of proved and probable reserves plus potentially recoverable resources.