Newalta and Tervita merge as well drilling increases
Published March 8th, 2018
Canadian industrial waste management specialists Newalta and Tervita have announced a merger to create a new publicly traded company with pro forma annual revenues of Can$2.6 billion (US$2.0 billion).
Both companies already hold leading positions in the market for the disposal of wastewater and brine in the Canadian oil sands, and the combined entity – New Tervita – will supply industrial waste treatment and disposal services to oil & gas and mining customers throughout North America.
The deal will be structured as an all-stock reverse takeover, which will take Tervita public and result in Newalta shareholders retaining an 11% stake in the combined entity.
The oil & gas industry downturn eroded TSE-listed Newalta’s annual revenues from Can$495 million in 2014 to Can$247 million last year, although this week’s merger comes amid improved drilling activity in Canada – the Petroleum Services Association of Canada forecasts a 5% increase in the total number of drilled wells in 2018 versus 2017.