M&A picks up in Q4 of each oil price cycle
Posted: Mon Oct 26, 2015 8:14 pm
North Carolina based Duke Energy (ticker: DUK) announced that it will acquire Piedmont Natural Gas (ticker: PDM) for $4.9 billion in cash, and assume Piedmont’s $1.8 billion in debt, for total consideration of $6.7 billion. The acquisition was unanimously approved by the boards of both companies. Upon transaction closing, Piedmont shareholders will receive $60 in cash for each share of PDM that they own, representing an approximately 40% premium to Piedmont’s October 23, 2015, closing price.
The acquisition comes less than a week after news that Exelon (ticker: EXC), an electrical utility company serving the North East, will purchase Pepco Holdings (ticker: POM) for $6.8 billion in an all cash transaction.
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Western Refining (ticker: WNR) is attempting to enhance its Midwest footprint, proposing a $2.56 billion buyout deal of Northern Tier Energy LP (ticker: NTI). WNR already owns 100% of the partnership and 38% of NTI shares. The proposal consists of a cash-and-stock offer that includes $17.50 and 0.2266 shares of WNR in exchange for one NTI share, amounting to a premium of 15% relative to Northern Tier’s average 20-day closing price as of October 23, 2015.
Western Refining operates refineries in El Paso, Texas, and Gallup, New Mexico, with retail businesses throughout Arizona, Colorado, New Mexico and Texas. WNR serves as the general partner of its master limited partnership, Western Refining Logistics, LP (ticker: WNRL), of which it has 66% ownership. WNRL entails terminals and storage facilities, in addition to approximately 300 miles of crude oil pipelines. NTI consists of downstream and retail businesses in Minnesota and Wisconsin.
The acquisition comes less than a week after news that Exelon (ticker: EXC), an electrical utility company serving the North East, will purchase Pepco Holdings (ticker: POM) for $6.8 billion in an all cash transaction.
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Western Refining (ticker: WNR) is attempting to enhance its Midwest footprint, proposing a $2.56 billion buyout deal of Northern Tier Energy LP (ticker: NTI). WNR already owns 100% of the partnership and 38% of NTI shares. The proposal consists of a cash-and-stock offer that includes $17.50 and 0.2266 shares of WNR in exchange for one NTI share, amounting to a premium of 15% relative to Northern Tier’s average 20-day closing price as of October 23, 2015.
Western Refining operates refineries in El Paso, Texas, and Gallup, New Mexico, with retail businesses throughout Arizona, Colorado, New Mexico and Texas. WNR serves as the general partner of its master limited partnership, Western Refining Logistics, LP (ticker: WNRL), of which it has 66% ownership. WNRL entails terminals and storage facilities, in addition to approximately 300 miles of crude oil pipelines. NTI consists of downstream and retail businesses in Minnesota and Wisconsin.