Is there logic in Kistos-Serica?

Both sides appear potentially interested in a union on their terms. But not all analysts are convinced

UK-listed Kistos Energy has unveiled a 382p/share offer for its larger peer Serica Energy and revealed that, having initially rejected Kistos’ offer, the latter instead made an offer for the former, which was also spurned. Serica’s management sees “industrial logic in combining the portfolios of the two companies”, according to Kistos. But not everyone is convinced. “There is a clear industrial logic to a combination of the two businesses,” says Daniel Slater, oil and gas research director at brokerage Arden Partners. “There should be an element of synergies—although admittedly most costs will still be field-level. But it would also create another listed UK E&P of significant scale, with