Cepsa Completes $2.2 Billion Merger With Houston-Based Coastal Energy

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Purchased the Houston-based E&P company adding crude and natural gas assets in SE Asia.

Cia. Espanola de Petroleos SA (Cepsa) completed its acquisition of Houston-based Coastal Energy Co. for US$2.2 billion (C$2.3 billion) adding crude and natural gas assets in Southeast Asia to its portfolio.

Coastal was merged with Condor Acquisition (Cayman) Ltd., a newly-incorporated entity controlled by Madrid-based Cepsa. The venture will take on Coastal's C$51 million of net debt as part of the deal.

Cepsa and partner Strategic Resources (Global) Ltd. acquired all of Coasta's issued and outstanding shares for C$19 a share. The shares are expected to be delisted from the Toronto Stock Exchange within two to four business days.

Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC were financial advisors to Coastal. Stikeman Elliott LLP, Cleary Gottlieb Steen & Hamilton LLP and Walkers were legal advisors to Coastal. Goldman Sachs International was financial advisor to Cepsa. PriceWaterhouseCoopers was a financial advisor to Cepsa and Strategic. Freshfields Bruckhaus Deringer was legal advisor to Cepsa. Blake, Cassels & Graydon LLP, Baker & McKenzie International and Conyers Dill & Pearman were legal advisors to Cepsa and Strategic.