Oneok to Buy Magellan in $19 Billion Energy Pipeline Deal

Oneok Inc. agreed to buy Magellan Midstream Partners LP in a $18.8 billion cash-and-stock transaction that would create one of the largest US oil and natural gas pipeline operators.

The deal will see each Magellan stakeholder receive $25 in cash and 0.667 shares of Oneok stock per unit, representing a 22% premium to closing prices on May 12, the companies said in a joint statement on Sunday. The transaction includes $8.8 billion in new equity and the assumption of $5 billion of existing net debt.

Pipeline operators are increasingly turning to acquisitions for growth as the transition to renewable ...