Devon to Buy WPX After Permian Investors Push for More M&A
- All-stock merger includes a small premium; Devon shares jump
- Company to retain Devon name, be led by WPX CEO Rick Muncrief
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Devon Energy Corp. agreed to acquire WPX Energy Inc. in a $2.56 billion all-stock deal, creating one of the largest independent U.S. shale producers and answering investor calls for consolidation at a time of crisis for the sector.
The transaction, which includes a deal premium of about 2.6%, will see Devon shareholders own approximately 57 percent of the combined entity, the companies said Monday in a statement. Shares of Devon and WPX surged, indicating investor enthusiasm for the deal.