Magellan Midstream Partners L.P. MMP shares are trading higher Monday after the company announced a merger with ONEOK Inc OKE.
What Happened: Magellan and ONEOK executed a definitive merger agreement in which ONEOK will acquire all outstanding units of Magellan in a cash-and-stock transaction valued at approximately $18.8 billion.
The agreement includes $25 in cash and 0.6670 shares of ONEOK common stock for each outstanding Magellan common unit, representing an implied value of $67.50 per Magellan unit.
"This transaction provides a significant upfront cash component and an opportunity for Magellan investors to benefit from the attractive cash dividend offered by the combined company going forward," said Aaron Milford, president and CEO of Magellan.
The transaction has been unanimously approved by both boards and is expected to close in the third quarter.
Related Link: ONEOK Buys Magellan Midstream Plan For $19B To Boost Offering
MMP Price Action: Megellan shares were up 14.8% at $63.61 at the time of publication, according to Benzinga Pro.
Photo: Romeo Budai from Pixabay.
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