Pipeline operator ONEOK to acquire remaining shares of EnLink for US$4.3 billion | Real Time Headlines

pipeline operator Ook On Sunday it said it would buy the remaining stake in the peer group. Allianz MidstreamThe $4.3 billion all-stock deal will bolster its presence in the Permian Basin amid increasing consolidation in the U.S. energy industry.

August, ONEOK obtained Global Infrastructure Partners acquired a 43% controlling interest in Enlink, which has a solid presence in the Permian Basin, for about $3.3 billion in cash.

ONEOK said it will issue 0.1412 common shares for each EnLink unit.

According to data calculated by Reuters based on the last closing prices of EnLink and ONEOK, the transaction values ​​Enlink at approximately US$7.6 billion, and the equity acquisition will represent a premium of approximately 5% to EnLink’s closing price on Friday.

The U.S. pipeline and storage industry is considered ripe for dealmaking due to increasing consolidation among oil and gas producers and obstacles to getting new energy infrastructure approved and built.

Earlier this month, another pipeline operator, DT Midstream agree Acquired ONEOK’s three natural gas transmission pipelines for US$1.2 billion in cash to strengthen its presence in the Midwest market.