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 Twitter and become a fan on Facebook.
NEW YORK ( TheStreet) -- Energy companies Apache ( APA) 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."