Encana Buying Newfield for $5.5B
CBJ — Encana has signed a deal to acquire Newfield Exploration in an all-stock offer for about US$5.5 billion.
As part of the deal Encana will also assume US$2.2 billion of Newfield debt.
The acquisition requires the support of a two-thirds majority vote of Newfield shareholders and a majority vote by Encana shareholders for the deal to be finalized.
It’s estimated that Encana shareholders will own about 64% of the combined entity while Newfield shareholders will own about 36%.