Benzinga - by Benzinga Insights, Benzinga Staff Writer.
APA (NASDAQ:APA) has announced an acquisition of Callon Petroleum (NYSE:CPE) that is expected to be completed in Q2 of 2024.
Under the terms of the agreement, APA has agreed to give Callon Petroleum $4.50 billion in stock in exchange for CPE stock.
About The Companies Involved Based in Houston, APA is an independent exploration and production company. It operates primarily in the U.
Callon Petroleum Company engages in the exploration, development, acquisition, and production of oil and natural gas. Activities are primarily conducted in the Permian Basin region of West Texas and southeastern New Mexico.
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.
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