That deal will have holders of AQUA stock receive 0.48 shares of XYL stock for each share they own. That represents a value of $52.89 per share, which is a 29% premium over the stock’s closing price on Friday.
When the deal closes, XYL shareholders will retain a 75% stake in the combined company. That will see current AQUA shareholders owning a 25% stake in the merged company. Current Xylem president and CEO Patrick Decker will lead the combined company.
Decker said the following in a press release:
“Solving the world’s water challenges has never been more urgent. Our acquisition of Evoqua creates a transformative global platform to address water scarcity, affordability and resilience at even greater scale.”
When Will The Deal Close?
Xylem and Evoqua are anticipating the acquisition to close in mid-2023. The deal will first need approval from regulators, as well as approval from shareholders of XYL and AQUA stock.
XYL stock is seeing heavy trading as some 1 million shares change hands. The company’s daily average trading volume is closer to 866,000 shares.
Investors will note that it’s common for a company’s stock to decrease when it plans to acquire another company. That makes the 9.4% drop XYL stock is seeing today unsurprising.
There’s more recent stock market news traders can read about at the links below!
We’ve got all of the hottest stock market news traders need to know about on Monday! A few examples include what’s happening with shares of Ryvyl (NASDAQ:RVYL), Allarity Therapeutics (NASDAQ:ALLR), and Pliant Therapeutics (NASDAQ:PLRX) stock today. You can catch up on that news at the links below!
More Monday Stock Market News
- Why Is Ryvyl (RVYL) Stock Is On the Move Today?
- Why Is Allarity Therapeutics (ALLR) Stock 72% Up Today?
- Why Is Pliant Therapeutics (PLRX) Stock Up 62% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.