Canada's Secure Energy to Buy Tervita as Oil Deals Speed Up

 (Reuters) — Canada's Secure Energy Services Inc said on Tuesday it would buy waste management services firm Tervita Corp in an all-stock deal valued at C$478 million ($379.5 million), the latest consolidation in the country's oil sector.

The deal, which will value the combined company at around C$2.3 billion, comes as oil and gas companies seek to benefit from a recent run-up in crude oil prices while keeping a tight leash on costs.

Secure, which operates a network of crude processing and storage plants, oil and water pipeline and crude-by-rail terminals, said it will pay 1.2757 of its shares for each Tervita share held.

At the implied price of C$4.13 per Tervita share, the deal values the industrial waste management firm at a 10.7% discount to its Monday closing price of C$4.63.

($1 = 1.2596 Canadian dollars)

 

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