The competitive landscape for North Sea energy assets continues to evolve, with Ratio Petroleum Energy LP successfully outbidding Serica Energy plc for Pharos Energy PLC.
Meanwhile, NEO NEXT+ Energy has formally completed its acquisition of Deltic Energy PLC, further consolidating operations within the UK Continental Shelf.
North Sea producer Serica Energy confirmed its decision to abandon its bid for Pharos Energy after the latter’s board endorsed an enhanced all-cash proposal from Ratio Petroleum. Ratio’s revised offer, announced on 7 August 2026, valued Pharos at 32.8183 pence per share, which included 28.8183 pence in cash and a 4 pence special dividend. This offer, valuing Pharos at approximately £146.4 million, surpassed Serica’s final proposal.
Serica’s competing offer, initially made on 26 July 2026, amounted to 32.6683 pence per share, comprising 28.6683 pence in cash and a 4 pence special dividend, valuing Pharos at approximately £145.7 million.
The Pharos board had initially recommended Serica’s bid. However, upon receiving Ratio’s improved offer, which represented a 0.5% premium over Serica’s terms, the Pharos board unanimously withdrew its recommendation for Serica’s proposal and has since unanimously recommended shareholders support Ratio’s deal.
Serica had previously declared that its 32.6683 pence per share proposal would not be increased, emphasising a “highly disciplined approach to M&A”. Its subsequent confirmation that it would not proceed with the final offer resulted in the Takeover Panel releasing the company from its obligation to complete the transaction. Pharos shareholders are now scheduled to vote on the Ratio takeover at a Court Meeting and General Meeting on 28 August 2026.
Meanwhile, in another significant North Sea transaction, NEO NEXT+ Energy has completed its takeover of Deltic Energy. The recommended cash acquisition, which valued the AIM-listed North Sea explorer at approximately £7.2 million, became effective on 14 August 2026. Under the terms, Deltic shareholders received 7.7 pence in cash for each share, representing a substantial premium of approximately 156.7% to the company’s closing price on 21 April 2026.
In Case You Missed it:
The acquisition followed a period of uncertainty for Deltic Energy, which had been facing funding constraints and a challenging market environment. The deal progressed through several stages of approval: Deltic shareholders approved the acquisition on 24 June 2026. Regulatory consent for the change of control was granted by the North Sea Transition Authority (NSTA) on 24 July 2026. The High Court subsequently sanctioned the scheme of arrangement on 13 August 2026.
Following the completion, Deltic Energy confirmed that all conditions related to the acquisition had been satisfied, with its entire issued share capital now owned by NEO NEXT+. Trading in Deltic shares on AIM was suspended from 07:30 BST on 14 August 2026, with their admission to the London Stock Exchange’s junior market expected to be cancelled from 07:00 BST on 17 August 2026.
The takeover integrates Deltic’s North Sea interests into NEO NEXT+ Energy, an entity formed through the strategic combination of NEO Energy and Repsol Resources UK.
