Deal Insight
POSCO acquires Senex for US$670 million
Report summary
POSCO International has acquired Senex Energy by way of a scheme of arrangement. POSCO International is a global division of the South Korean conglomerate POSCO with upstream assets in South Korea, Myanmar, Vietnam, Malaysia and Peru. The acquisition of Senex is its first foray into the Australian upstream industry. POSCO's move highlights the attractiveness of regional gas markets, particularly in supply-constrained areas such as Eastern Australia. The deal also illustrates the growing role of ‘other' buyer types in the upstream M&A space, particularly conglomerates, traders, miners and utilities, in addition to local E&P players. And lastly, this transaction shows the importance of a large, diversified portfolio to increase resilience and manage a growing range of industry risks.
Table of contents
- Executive summary
- Transaction details
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Upstream assets
- Roma North (formerly, Western Surat Gas Project)
- Atlas
-
Deal analysis
- Bid premium
-
Upsides and risks
- Upsides
- Downsides
-
Strategic rationale
- Portfolio diversification and expansion
- Exposure to Australian east coast gas market
- Cash generation
- Hancock Energy farm-down
- Senex Energy
- Oil & gas pricing and assumptions
Tables and charts
This report includes 8 images and tables including:
- Executive summary: Table 1
- Senex operations
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Upstream assets: Table 1
- Deal analysis: Table 1
- Deal analysis: Table 2
- Deal analysis: Table 3
What's included
This report contains:
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