Exxon Mobil Corp., the biggest U.S. oil company, agreed to buy XTO Energy Inc. for $31 billion in a bet that U.S. emissions restrictions will spur increased demand for natural gas.
Owners of Fort Worth, Texas-based XTO will get 0.7098 share of Exxon for each of their shares, the companies said today in a statement. The transaction, the largest energy acquisition since 2006 and Irving, Texas-based ExxonÃ¢â‚¬â„¢s biggest takeover since the purchase of Mobil Corp. in 1999, values XTO at $51.69 a share, 25 percent higher than its last closing price.
Ã¢â‚¬Å“This says that corporate M&A is alive and well in the exploration and production sector,Ã¢â‚¬Â said Curtis Trimble, an analyst at Natixis Bleichroeder Inc. in Houston. Ã¢â‚¬Å“It also says that Exxon isnÃ¢â‚¬â„¢t shy about stepping up their exposure to the natural-gas market. Almost certainly, we will see some more follow-the-leader type transactions.Ã¢â‚¬Â
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