DNO ASA Agrees to Acquire Capricorn Energy for $396 Million

DNO ASA, a Norwegian oil company, has agreed to acquire UK-listed Capricorn Energy PLC for approximately $396 million. The deal, announced Tuesday, provides shareholders with $5.214 in cash per share.

The Capricorn board recommended the acquisition and withdrew its support for a previous bid from Genel Energy. In July, Genel Energy had offered $4.74 per share, valuing the company between $360 million and $366 million. This successful bid follows a prior failed attempt by DNO to purchase Genel Energy.

The acquisition occurs during a period of heightened merger and acquisition activity among energy firms focused on the Middle East. This trend is driven by a surge in oil prices following the start of the Iran war in February. Before the DNO agreement, Capricorn had entered talks with the Cafani Group and Samos, though both parties eventually exited negotiations.