NEW YORK (TheStreet) -- Energy companies Apache (APA) - Get Report and Mariner Energy (ME) have agreed to a merger that the companies say will combine Apache's "global reach and resources" with Mariner's "track record of successful deepwater exploration and its resource potential."
The deal entails Mariner shareholders receiving 0.17043 a share of Apache common stock and $7.80 in cash for each outstanding share of Mariner common stock.
At Apache's closing stock price of $108.06 on Wednesday, the transaction values Mariner shares at $26.22 a share, or about $2.7 billion. Mariner shares closed Wednesday at $18.09.
Apache said it will take on $1.2 billion in debt in connection with the deal.
In Thursday morning trading, Apache stock is down 1.8% to $106.14, while shares of Mariner are up 7.4% to $25.50.
-- Reported by Andrea Tse in New York
Follow TheStreet.com on
and become a fan on
Copyright 2010 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.