Chesapeake Energy CHK has announced a merger with Southwestern Energy SWN that is expected to be completed in Q2 of 2024.
Under the terms of the agreement, Chesapeake Energy has agreed to give Southwestern Energy $7.40 billion in stock in exchange for SWN stock.
About The Companies Involved
Chesapeake Energy Corp is a us-based exploration and production company. It is engaged in the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids from underground reservoirs.
Southwestern Energy Co is a us-based independent energy company. It is engaged in exploration, development and production activities, including related natural gas gathering and marketing.
How A Merger Works
A merger happens when a company combines operations with another company. In practice, one company will buy the other company’s stock in exchange for its own stock. In some cases, cash is used to pay for the company’s stock but usually the companies agree to a stock-for-stock transaction.
Due to the exchange and acquisition of stock, a merger is similar to an acquisition. This is why the two terms are commonly grouped together as mergers and acquisitions (M&A). However, in a merger, the leadership & operations of both companies usually change dramatically, while during an acquisition this is less likely to happen.
Make sure to follow our mergers & acquisitions calendar to stay-up-to-date on the most recent M&A deals.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.