Oneok to Buy Magellan in $19 Billion Energy Pipeline Deal
- Agreement should create one of largest US pipeline operators
- Deal allows Oneok to expand into oil and fuel transportation
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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.