Takeover: BP Buys Biomethane Company Archaea Energy - Share Price Ignites Turbo
Houston, USA - British energy company BP is set to acquire US biomethane producer Archaea Energy for about 26 USD per Archaea share. That's a premium of about 38 percent to Archaea's volume-weighted average share price for the 30 days ending 14 October 2022.
„In a very short period of time, we have rapidly become a leading RNG platform in the U.S., and today’s announcement will further enable this business to realize its full potential. bp is a world-class partner and a strong fit for Archaea, with a strategic focus on bioenergy and an operational history in the RNG value chain that is fully aligned with ours and our partners", said Nick Stork, Chief Executive Officer and co-founder of Archaea, welcoming the acquisition.
Archaea sees a number of strategic benefits in the acquisition by BP. The company expects to be able to accelerate its growth plans. In addition, Archaea will have access to BP's trading capabilities and broad customer base, which will help many of BP's customers achieve their decarbonisation goals, Archaea said.
Subject to regulatory approvals and Archaea shareholder approval, the parties aim to complete the acquisition by the end of 2022. Upon completion of the transaction, Archaea will operate as a subsidiary within BP and become part of the larger global organisation.
Archaea Energy shares are benefiting strongly from BP's takeover plans in today's trading. On Wall Street in New York, the share price is going through the roof, currently trading at USD 25.72 (16:22, 17.10.2022, NYSE), up 52.4 percent.
Source: IWR Online, 17 Oct 2022
