American oil and gas producer Linn Energy has announced its plan to purchase Berry Petroleum Co. in $2.5 billion stock deal, increasing its gas production and bolstering its oil reserves located in Utah, Colorado, Texas and California.
Once completed, the acquisition will be the largest of the company and it will raise oil proportion in its reserves at a time when there are decreasing prices of gas resulting from oversupply from shale fields in North America.
For the past two years, the company was able to raise its shares by 4% to $38.52 in early acquisition activities, including its purchase of BP Plc's natural gas reserves in Kansas, while Berry Petroleum saw 18% rise in its stock to $45.76, making that second higher gainer based on percentage in New York Stock Exchange.
Both parties made join statement revealing the valuation of the deal at $4.3 billion including debt.
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