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Big Law

U.S. Pipeline Operator Oneok Agrees to Buy Magellan Midstream Partners in $18.8 Billion Deal

Oneok Inc. agreed to buy Magellan Midstream Partners LP in a $18.8 billion cash-and-stock transaction that would create one of the largest US oil and natural gas pipeline operators.

The deal will see each Magellan stakeholder receive $25 in cash and 0.667 shares of Oneok stock per unit, representing a 22% premium to closing prices on May 12, the companies said in a joint statement on Sunday. The transaction includes $8.8 billion in new equity and the assumption of $5 billion of existing net debt.

Pipeline operators are increasingly turning to acquisitions for growth as the transition to renewable energy pares the need for new links and threatens to make some existing assets redundant. The acquisition will give Oneok, which currently transports only natural gas and its byproducts, access to a network of crude oil and refined-products conduits and terminals sprawling from Texas to Minnesota.

Read the source article at finance.yahoo.com

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