Energy Company Exxon Mobil Announces Acquisition of Denbury

Exxon Mobil XOM has announced an acquisition of Denbury DEN that is expected to be completed in Q4 of 2023.

Under the terms of the agreement, Exxon Mobil has agreed to give Denbury $4.90 billion in stock in exchange for DEN stock.

About The Companies Involved

ExxonMobil is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2022, it produced 2.

Denbury Inc is an independent energy company. Its operations are focused on two key operating areas: the Gulf Coast and Rocky Mountain regions.

How An Acquisition Works

An acquisition is when one company, called the acquiring company, buys most or all of another company's, or target company's, shares to gain ownership. Buying more than 50% of a company's stock allows the the acquirer to make decisions without the approval of the company's shareholders.

An acquisition can potentially lead to a merger with the parent company, which makes it similar to a merger. 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.