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Egypt: Canada oil merger to accelerate African growth

 |  March 18, 2014

Canada’s Caracal Energy has reportedly inked a nearly $700 million deal to acquire TransGlobe Energy, a move that reports say will accelerate growth of Africa’s oil industry.

TransGlobe, which primarily focuses its operations in Egypt, announced the merger plans early this week. According to the parties, the merged company will have a market capitalization of about $1.8 billion, reports say.

In a statement, TransGlobe head Ross Clarkson said that the company is “looking more at Africa” to expand operations. Reports say Egypt is the world’s largest non-OPEC crude oil producer in Africa. But political turmoil has struck both foreign and domestic oil operations hard.

But according to the companies, TransGlobe has not been affected by the political unrest and the merger will not be deterred because of it.

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