ExxonMobil Pays $60B Deal : Largest Acquisition of 2023

123
SHARE
ExxonMobil Pays $60B Deal
(FILES) In this file photo taken on January 05, 2016, an Exxon gas station in Woodbridge, Virginia. - US energy giant ExxonMobil filed suit on December 28, 2022, against the European Union seeking to block its temporary tax on oil firms' windfall profits, a company spokesperson said. With energy prices soaring following Russia's invasion of Ukraine, European Commission chief Ursula von der Leyen announced in September the plan for major oil, gas and coal companies to pay a "crisis contribution" on their elevated 2022 profits. (Photo by Saul LOEB / AFP)

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.