Spanish energy giant Repsol SA (ADR) (OTCMKTS:REPYY) announced on Tuesday it was planning to acquire Talisman Energy Inc. (TLM) for $8.3 billion. The announcement comes after a long global search for acquisitions to increase crude reserves and production.

The deal must still be approved by Talisman shareholders, including billionaire Carl Icahn. Icahn’s representatives on Talisman’s board support the offer, Repsol Chairman Antonio Brufau told reporters in Madrid after announcing the deal.

Of note, Goldman Sachs Group and Nomura Holdings advised Talisman in the transaction, and JPMorgan Chase & Co. advised Repsol.

Repsol

More on the Repsol deal

When its Argentine division YPF SA (ADR) (NYSE:YPF) was nationalized in 2012, Repsol lost nearly half of its oil and gas reserves and has been looking to fill the gap for some months now after receiving a $5 billion settlement from Argentina this Spring.

The deal with Talisman will increase Repsol’s reserves by 55% and up production by 76%, the firm noted in a regulatory filing. Talisman Energy is a global energy producer, but the firm’s main assets are located in the U.S. and Canada.

According to the terms of the deal, Talisman shareholders will be paid $8, or C$9.33, in cash for each share they own. That represents a more than 60% premium to Talisman’s 30-day weighted average price.

Repsol has been seeking an acquisition in the range of $10 billion since receiving compensation from Argentina for the nationalization of YPF. The total value of the Talisman deal comes out to around $13 billion (including Talisman debt), according to Bloomberg data. Of note, the offer from Repsol is coming when a slump in crude has hammered the Canadian firm’s stock under C$5 for the first time in 14 years.

“They’re paying a full and fair price that Talisman shareholders should be satisfied with,” Brendan Warn, an analyst at BMO Capital Markets in London, commented in a phone interview. “If oil had stayed above $100, the deal may not have happened as Talisman would have ploughed on.”

Statement from Repsol CEO

“The transaction with Talisman is the result of a thorough analysis of more than 100 companies and assets around the world,” Repsol CEO Josu Jon Imaz noted in a statement Tuesday. “Talisman has always been the best option due to the excellent quality of its assets.”