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Investing.com -- Repsol (OTC:REPYY) has declared its intent to merge Repsol Resources UK with NEO Energy, establishing a leading independent producer in the North Sea.
The newly formed entity will be co-owned by NEO, holding a 55% stake, and Repsol UK, with a 45% stake.
The merger is set to enhance operational scale and efficiency, laying a foundation for both organic and inorganic growth.
The combined business is projected to produce approximately 130,000 barrels of oil equivalent per day (boe/d) by 2025. The merger also aims to generate over $1 billion in synergies.
Repsol will continue to hold $1.8 billion in decommissioning liabilities tied to its legacy assets.
Morgan Stanley (NYSE:MS) has expressed a positive outlook on the deal, stating that it could unlock value for both Repsol and NEO through operational and tax synergies.
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