EnLink Secures $4.3 Billion Merger with ONEOK
Deal News | Nov 25, 2024 | EIN
EnLink Midstream, LLC has merged with ONEOK, Inc. in a transaction valued at $4.3 billion. The acquisition deal stipulates that for each EnLink common unit not owned by ONEOK, 0.1412 shares of ONEOK stock will be exchanged. The deal values EnLink's shares at $15.75 based on their closing price on November 22, 2024, against ONEOK's 10-day VWAP. This transaction will result in ONEOK issuing around 37 million shares, which will increase its shares outstanding by approximately 6%. ONEOK already holds 44% of EnLink's common units and has committed to voting for the transaction, which is expected to finalize in the first quarter of 2025 subject to customary closing conditions and majority approval from EnLink's remaining shareholders. Previously, ONEOK had acquired Global Infrastructure Partners' entire interest in EnLink for $3.3 billion in October 2024.
Sectors
- Energy Infrastructure
- Mergers and Acquisitions
Geography
- United States – Both ONEOK and EnLink are major energy companies headquartered in the United States, central to the regional energy sector.
Industry
- Energy Infrastructure – The transaction involves companies, ONEOK and EnLink, operating within the energy and midstream sectors, focusing on infrastructure for oil and gas transportation and storage.
- Mergers and Acquisitions – Central focus of the article is the acquisition deal between ONEOK and EnLink, a strategic corporate M&A activity.
Financials
- 4.3 billion USD – The value of the acquisition deal for the remaining common units of EnLink.
- 3.3 billion USD – Amount paid by ONEOK to acquire Global Infrastructure Partners' entire interest in EnLink.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ONEOK, Inc. | Bidding Company | Company | A natural gas utility company, leading the acquisition of EnLink. |
| EnLink Midstream, LLC | Target Company | Company | A midstream energy services company facilitating the deal with ONEOK. |
| Global Infrastructure Partners | Vendor | Company | Previously held a significant stake in EnLink, acquired by ONEOK in an earlier transaction. |
| Pierce H. Norton II | CEO | Person | President and CEO of ONEOK, Inc., providing statements on the transaction. |