Published on 4 Jan 2024 on Motley Fool via Yahoo Finance

What to Expect If ExxonMobil Doesn't End Up Buying Pioneer

Wall Street has a habit of swinging between being overly positive and overly negative. One area where those positive feelings often reign supreme is in the arena of mergers and acquisitions. But not all big deals that are proposed succeed, and there are material implications for the players when they fall through. This is important to remember as you look at ExxonMobil's (NYSE: XOM) proposed acquisition of Pioneer Natural Resources (NYSE: PXD).

ExxonMobil's big deal for Pioneer

ExxonMobil announced its plan to buy Pioneer on Oct. 11. It offered an all-stock deal, which means that shareholders of Pioneer will get shares of ExxonMobil in exchange for the shares of Pioneer they own. The exchange rate is pegged at 2.3234 shares of ExxonMobil for each share of Pioneer. At the time of the announcement, that translated to a value of roughly $253 per share of Pioneer. Including debt, the deal was valued at $64.5 billion.