LFG - Why Archaea Energy Stock Soared 54% Today
Shares of Archaea Energy (NYSE: LFG) surged on Monday after the renewable natural gas (RNG) producer struck a deal to be acquired by British oil giant BP (NYSE: BP) . By the close of trading, Archaea Energy's stock price was up 54%.
Under the terms of the deal, BP will purchase Archaea Energy for roughly $4.1 billion, including its net debt of $800 million. The $26-per-share transaction price represents a premium of about 38% to Archaea's volume-weighted average stock price over the prior 30-day period. The deal is expected to close by the end of 2022, subject to regulatory and shareholder approval.
BP intends to use its bountiful financial resources to accelerate the growth of Archaea's leading RNG production platform. The two companies also intend to market Archaea's renewable energy to BP's customers that are striving to progress toward their increasingly crucial decarbonization goals.
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Why Archaea Energy Stock Soared 54% Today