Norway’s Aker Solutions has walked away from a deal to acquire Dubai-based oilfield services company NPS Energy.
Aker announced in May that it had agreed to buy NPS Energy for an equity value of $350 million and assume about $110 million in net interest bearing debt as it looked target contract wins in the Middle East and North Africa.
However, the deal was conditional upon a number of parameters being met before the end of the closing period on 20 November which Aker said had not been met.
“We and the seller have not been able to reach the conditions for closing as agreed, and rather than risk increasing uncertainty, it was in the company and our shareholders’ interest to terminate the transaction,” Aker executive chairman Oyvind Eriksen said in a statement on Wednesday.
Aker said, as a consequence of the deal not going ahead, its near-term growth in the Middle East and North Africa market was likely to be “organic”, adding the cancelled deal also meant it could deploy more of its constrained resources on current and future opportunities.