Civitas Resources Inc (NYSE:CIVI) is in talks to merge with Permian Basin rival SM Energy Co (NYSE:SM) in a potential merger of equals that could create a company worth at least $14 billion, including debt, Bloomberg reported on Thursday, citing people familiar with the matter.
The companies have discussed a transaction without a takeover premium as Civitas explores strategic options, the report said. No agreement has been finalized, and other potential suitors are also showing interest in Civitas, according to the report.
If completed, the tie-up would mark one of the largest U.S. oil and gas deals this year amid a wave of consolidation in the Permian Basin, the country’s most prolific oil field.
Civitas, valued at about $3.2 billion, holds roughly 140,000 acres across the basin, while SM, with a $2.9 billion market value, controls about 109,000 acres in the Midland Basin, the report added.
Source :
https://www.investing.com/news/stock-market-news/civitas-weighs-merger-with-sm-energy-could-create-a-14-bln-oil-giant--bloomberg-4278587
