Exxon Mobil (XOM) will purchase Permian Shale big Pioneer Pure Assets (PXD) for $59.5 billion, following experiences over the previous week {that a} deal was shut. XOM inventory fell barely early Wednesday. Pioneer Pure rose modestly, already up solidly on takeover buzz.
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Exxon pays $253 a share for Pioneer Pure Assets within the all-stock transaction. Buyers will get 2.2324 Exxon shares for every PXD share. The overall enterprise worth, together with internet debt, is $64.5 billion.
Exxon expects the deal to shut within the first half of 2024.
The acquisition would give Exxon a serious place within the Permian Shale basin in east New Mexico and west Texas.
On Oct. 5, The Wall Avenue Journal reported that Exxon Mobil was near a Pioneer Pure takeover deal for roughly $60 billion. Tuesday night time, Bloomberg stated a deal above $250 a share might come as quickly as Wednesday. Again in April, the WSJ reported Exxon and Pioneer have been in early talks.
PXD inventory climbed 2% early Wednesday to about 242. Exxon fell barely.
On Tuesday, Pioneer superior 0.8% to 237.41, whereas XOM inventory dipped 0.2% to 110.45. At Tuesday’s shut, Pioneer inventory had a $55.35 billion market cap. Final Thursday, PXD inventory had a $50.1 billion valuation.
Please observe Ed Carson on X/Twitter at @IBD_ECarson, Threads at @edcarson1971 and Bluesky at @edcarson.bsky.social for inventory market updates and extra.
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