Capricorn and New Med to merge

The deal between the two independents leaves London-listed Tullow Oil without a dance partner

London-listed Capricorn Energy plans to combine with Israeli independent New Med Energy instead of UK-headquartered Tullow Oil. The merged company, which will retain the name New Med Energy, will be “one of the largest upstream energy independents listed in London”, Capricorn says. The Capricorn board “intends to recommend [the merger] unanimously” and “has unanimously decided to withdraw its intention to recommend the Tullow combination”. As recently as early September, the Capricorn board was still in favour of the Tullow merger but admitted they were also “assessing all options” and “exploring a number of expressions of interest”. New Med’s board will also unanimously recommend the deal.