What is the main topic?

The main topic is EnQuest's decision to withdraw from a deal with Serica Energy due to market volatility and economic uncertainty.

Why did EnQuest exit the deal?

EnQuest exited the deal because they could not agree on favorable terms amid market volatility and economic uncertainty.

How is the oil sector affected?

The oil sector is affected by recessionary concerns, lower oil demand expectations, and increased OPEC+ oil output.

Editorial & Advertiser disclosure

Global Banking & Finance Review® is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Home > Headlines > EnQuest bows out of Serica deal as market jitters hinder agreement on terms

Headlines

EnQuest bows out of Serica deal as market jitters hinder agreement on terms

Published by Global Banking & Finance Review®

Posted on May 2, 2025

2 min read

Last updated: January 24, 2026

Fourth sanctioned LNG tanker, Christophe De Margerie, at Russia's Arctic LNG 2 plant - Global Banking & Finance Review — The image showcases the Christophe De Margerie tanker docking at Russia's Arctic LNG 2, highlighting ongoing LNG export challenges amidst U.S. sanctions.

EnQuest Exits Serica Deal as Market Volatility Persists

(Reuters) -North Sea-focused oil producer EnQuest will not make an offer for UK's Serica Energy, the companies said on Friday, as the two could not agree on favourable terms in time amid market volatility.

EnQuest shares were down about 5% at 13.14 pence, while Serica shares were up 0.3% at 127 pence at 1623 GMT.

Serica said in March it was in talks with EnQuest about a possible deal. The termination occurs amid a broader wave of economic uncertainty fueled by sweeping global tariffs imposed by U.S. President Donald Trump.

The energy sector has been particularly rattled in early 2025, as recessionary concerns have weighed heavily on oil demand expectations, dragging prices lower as investors brace for a slowdown in global consumption.

Simultaneously, the OPEC+ alliance has been ramping up oil output, adding to global supply and compounding the downward pressure on prices.

The ripple effects of the trade tensions extend beyond energy. U.S. crop commodities trader Bunge Global's planned $34 billion merger with Glencore-backed Viterra is being stalled due to escalating U.S.-China trade friction, Bloomberg News reported on Friday, citing people familiar with the matter.

The trade tensions have also significantly narrowed the window for initial public offerings. Among the companies that have recently put their IPO plans on hold are Swedish fintech firm Klarna, San Francisco-based Chime, and ticketing platform StubHub.

EnQuest's decision came hours ahead of a "put up or shut up" deadline on Friday for the proposal, which would have given Serica shareholders a majority stake in the combined company and returned capital to investors.

Serica said it was confident in its "standalone ability to generate significant cash flow and deliver shareholder value and highly competitive shareholder returns."

(Reporting by Pushkala Aripaka and Aatrayee Chatterjee in Bengaluru; Editing by Shreya Biswas, Shinjini Ganguli and Matthew Lewis)

EnQuest bows out of Serica deal as market jitters hinder agreement on terms

Quick Summary

EnQuest Exits Serica Deal as Market Volatility Persists

Key Takeaways

Frequently Asked Questions about EnQuest bows out of Serica deal as market jitters hinder agreement on terms