A takeover bid increased shares of Archaea Energy Inc. (NYSE: LFG) up 52.96% to $25.82 at the time of the most recent check in the current session.

Who is purchasing LFG?

Today, Archaea Energy (LFG) stated that the company has consented to be bought by bp (NYSE: BP). Upon reaching an agreement, Archaea Energy agreed to pay around $26 in cash for each Archaea Class A and Class B share, for a total enterprise value of about $4.1 billion, which includes roughly $800 million in net debt. The cash payment is equivalent to a premium of almost 38% above LFG’s volume-weighted average share price for the three months ending October 14, 2022.

Strategic advantages for Archaea and its constituents:

Other transaction information:

What benefit will this have for LFG?

With the goal of becoming the world’s top RNG development firm, Archaea Energy (LFG) was established with the intention of lowering greenhouse gas emissions and promoting sustainability for several generations. The news made today will help LFG, which has quickly established itself as a premier RNG platform in the United States, to reach its full potential. With a strategic focus on bioenergy and operational experience in the RNG value chain that is completely aligned with LFG and its partners, bp is a top-tier partner and a great fit for Archaea.

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