knoc-to-pay-39-billion-for-harvest-energy-trust

KNOC to pay $3.9 billion for Harvest Energy Trust

By buying the Canadian energy company, state-owned KNOC makes a small step towards increasing Korea's self-sufficiency within oil and gas.

Korea National Oil Company KNOC has entered into an agreement to buy Canadian energy company Harvest Energy Trust for C$4.1 billion $3.9 billion. The purchase by the state-owned company is the second largest ever outbound MA transaction made by a Korean company, according to Dealogic data, following Doosan's $4.9 billion acquisition of the bobcat, utility equipment and attachments business units of Ingersoll Rand in July 2007.

KNOC will pay C$1.8 billion for all of Harvest's issued and outstanding trust units, valuing each unit in the company at C$10. KNOC will also assume C$2.3 billion of the Canadian company's debt. The debt is made up of C$1.1 billion of bank loans, C$250 million of...

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