Abu Dhabi National to buy second Canadian company

Abu Dhabi National Energy Co. (ADNEC, now TAQA) has agreed to buy Pioneer Natural Resources Canada Inc. from Dallas independent Pioneer Natural Resources Co. for $540 million.

By OGJ editors
HOUSTON, Aug. 23 -- Abu Dhabi National Energy Co. (ADNEC, now TAQA) has agreed to buy Pioneer Natural Resources Canada Inc. from Dallas independent Pioneer Natural Resources Co. for $540 million.

TAQA previously announced plans to expand internationally, particularly in Canada.

In May TAQA marked its entry into Canada by agreeing to buy Calgary-based Northrock Resources Ltd. for $2 billion from Pogo Producing Co. of Houston (OGJ, June 11, 2007, p. 32).

TAQA, an energy investment company and global conglomerate, was formed 2 years ago. The Abu Dhabi government owns 51% of the company. TAQA has investments in power generation, renewable energy, upstream oil and gas operations, pipeline, services, and structured finance projects.

Its acquisition of Pioneer's Canadian affiliate, subject to regulatory approvals, is expected to close during the fourth quarter.

Pioneer said it expects to utilize the proceeds from the divestiture for general corporate purposes, including share repurchases, debt reduction, and possibly acquisitions in existing operating areas. It has operations in the US, South Africa, and Tunisia.

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