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Image courtesy of Repsol.

After weeks of speculation, Spain’s Repsol purchased Talisman Energy Tuesday in deal worth $13 billion.

Repsol will pay $8.3 billion for 100 percent of Talisman’s shares, a 56 percent premium over the company’s $5.33 billion market value at closing Monday.

Repsol will also take on $4.7 billion of Talisman’s debt.

The boards of both companies unanimously approved the deal.

The purchase will boost Repsol’s reserves by 55 percent to over 2.3 billion barrels of oil equivalent and increase production by 76 percent to 680,000 barrels per day.

“The deal will transform Repsol into one of the largest energy groups worldwide, increasing its presence in politically-stable OECD countries and reinforcing its upstream business, which has become the company’s growth engine,” Repsol said.

Canada and the United States currently account for 10 percent of Repsol’s production.

After the purchase closes Repsol will allocate 30 percent of its capital employed, about $15 billion, to its North American activities.

The acquisition was partially financed with $6.3 billion in cash Repsol won from the Argentinian government for the seizure of YPF in 2012.

The deal is expected to close in the middle of 2015.

Repsol attempted to buy Talisman in July but backed out after conducting due diligence.

Weak oil prices, falling North Sea output and concern over debt levels have sent Talisman shares down from $11.85 to $3.74 per share in the last year.

Last month, Talisman warned that problems with its North Sea assets could force the company to take an unspecified amount in write downs during the fourth quarter.

“It’s the right moment because now our valuation of Talisman assets is higher than the price we are paying … so the sooner, the better,” Repsol CEO Josu Jon Imaz said.