XOM - You Can't Control Company Mergers but You Can Control What You Do About Them
2023-10-15 07:25:00 ET
The rumors about ExxonMobil (NYSE: XOM) merging with Pioneer Natural Resources (NYSE: PXD) started a week or so before the deal was finally announced. Now that the news is out there, Pioneer's stock has rallied (the rise in price actually started before the final deal was revealed). ExxonMobil's shares are a touch lower.
Investors now have to make some choices. Thinking through this deal can help guide investors as they think about future mergers they may face in their portfolios.
On Oct. 5, The Wall Street Journal reported that ExxonMobil was in talks to merge with Pioneer Natural Resources. The deal was valued at as much as $60 billion, according to unnamed sources. The impact on Pioneer's stock was quick, as it rallied toward the implied valuation. ExxonMobil's stock price didn't move all that much, but it fell in after-hours trading once the final deal was announced.
For further details see:
You Can't Control Company Mergers, but You Can Control What You Do About Them