U.S. shale producer Crescent Energy said on Monday it would acquire smaller peer Vital Energy in an all-stock deal valued at US$3.1 billion, including debt.
Vital shareholders will receive 1.9062 shares of Crescent common stock for each share held, representing a value of $18.95 per share and a premium of 20 per cent, based on the stocks’ last close.
Shares of Vital rose 11 per cent, while those of Crescent fell nearly three per cent before the bell.
Last week, Reuters reported that Crescent was in advanced talks to acquire Vital, citing people familiar with the matter.
Crescent shareholders will own about 77 per cent of the combined company and Vital shareholders will own the rest. The deal is expected to close by year-end 2025.
(Reporting by Sumit Saha in Bengaluru; Editing by Sriraj Kalluvila)