DP World Set to Acquire Topaz Energy
The world’s largest port operator DP World is in advanced discussions to acquire Topaz Energy & Marine, marking the Dubai-based company's first potential foray into the oil and gas industry.
Britain’s Sky News, citing sources, earlier reported that a $1.3 billion deal for DP World to take over Topaz could be announced as early as Monday. The report didn't specify whether the valuation was referring to the equity or enterprise value of the transaction.
However, Bloomberg reported that the port operator is in “very advanced” discussions to acquire Topaz Energy. The report quoted official sources confirming it is in discussions to purchase Dubai-headquartered Topaz Energy on Sunday.
"While negotiations are ongoing, there can be no certainty of a transaction," DP World said in a statement to Nasdaq Dubai, where its shares trade, on Sunday.
Topaz Energy operates a fleet of 120 vessels with a focus on the Caspian Sea, the Middle East and West Africa.
Bloomberg reported that the acquisition would end the prospect of Topaz listing in London. Its Omani owner, Renaissance Services, had been exploring an initial public offering for the business as recently as September.
According to Reuters, DP World has been on an acquisition spree in the past 18 months, buying P&O Ferries and P&O Ferrymasters in Europe and Puertos y Logistica in Chile. It also purchased an additional stake in DP World Australia and invested through its joint ventures in Canada and India.