
In a whirlwind move equivalent to a shark swallowing a sizeable fish, ExxonMobil, guided by the legal prowess of Davis Polk & Wardwell LLP, announced a whopping $59.5 billion agreement to purchase Permian Basin’s crown jewel, Pioneer Natural Resources. This marks the most titanic deal of 2023, casting a shadow on previous mergers.
ExxonMobil Pays $60B Deal : Terms of the Titanic Deal
Sailing at a price of $253 per share, Pioneer’s stakeholders are set to receive a bounty of 2.3234 ExxonMobil shares for every Pioneer share they possess. This mega-transaction packs an enterprise punch of approximately $64.5 billion.
Darren Woods, the skipper of ExxonMobil, sang praises of Pioneer, stating, “Pioneer’s unique asset base and deep-rooted industry intellect sets it as a Permian leader. Together, our synergy promises unparalleled value, dwarfing what either could achieve individually.”
With green lights flashing unanimously from both corporate boards, this mega-deal now embarks on its voyage through regulatory seas and the discerning eyes of Pioneer shareholders. Optimistically, this behemoth union aims to ring wedding bells by mid-next year.
Historical Context: A Game of Billion-Dollar Chess
Drawing parallels, should this deal sail through the expected rigorous regulatory currents, it would echo ExxonMobil’s monumental acquisition of Mobil in 1998 – a jaw-dropping $80 billion commitment back then.