LFG - Why Is Archaea Energy (LFG) Stock Up 52% Today?
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Archaea Energy (NYSE:LFG) stock is rocketing higher on Monday thanks to news that BP (NYSE:BP) is acquiring the company.
According to a press release from BP, the gas and oil giant will spend $3.3 billion in cash to bring Archaea Energy under its control. The company notes that this is in addition to $800 million of net debt.
The acquisition of Archaea Energy expands BP’s position in the bioenergy sector. This is a market that it wants to continue growing in as it seeks to reach net zero carbon emissions by the time 2050 rolls around.
Bernard Looney, CEO of BP, said the following about the deal for Archaea Energy.
“Archaea is a fantastic fast-growing business, and bp will add distinctive value through our trading business and customer reach. It will accelerate our key bioenergy growth engine, creating a real leader in the biogas sector, and support our net zero ambition.”
Details of the Deal
The $3.3 billion offer from BP comes to $26 per share of LFG stock. For the record, that represents a 38% premium to Archaea Energy’s 30-day volume-weighted average share price.
Archaea Energy and BP are expecting the deal to close by the end of 2022. This requires approval from regulators and shareholders, as well as the completion of other customary closing conditions.
LFG stock is up 52.4% as of Monday morning.
There’s more stock market news traders will need to know about below!
We’ve got all of the hottest stock market news for Monday! Among that is why shares of Digital World Acquisition (NASDAQ:DWAC), Continental Resources (NYSE:CLR), and Nio (NYSE:NIO) stock are on the move today. You can catch up on all of this news at the following links!
More Monday Stock Market News
- Why Is Digital World (DWAC) Stock Trending Today?
- Continental Resources (CLR) Stock Jumps on Buyout Offer
- What Is Going on With Nio (NIO) Stock Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
More From InvestorPlace
- Buy This $5 Stock BEFORE This Apple Project Goes Live
- The Best $1 Investment You Can Make Today
- Early Bitcoin Millionaire Reveals His Next Big Crypto Trade “On Air”
- It doesn’t matter if you have $500 or $5 million. Do this now.
The post Why Is Archaea Energy (LFG) Stock Up 52% Today? appeared first on InvestorPlace.