NEO Energy to merge with Repsol Resources.

NEO Energy, a renewable energy power generation, agreed to merge with Repsol Resources, an oil & natural gas company. Financial terms were not disclosed. “This is a great deal for all stakeholders. Our strategy can be summarized as “Resilience, Yield and Growth”: the combined company has much more scale and diversity and opportunities for cost consolidation and portfolio high-grading giving resilience despite the tough conditions in the UK. The benefits of synergies from consolidation will create much stronger value creation, profit and cash flow yield for shareholders and more options for capital allocation decisions well into the next decade. But this company will also be very well positioned to choose both organic and inorganic growth. We will certainly look to be making more value accretive acquisitions. We have known Repsol E&P for many years and have the highest regard for them as a capable and reliable partner,” John Knight, NEO Energy Chair.