LONDON (dpa-AFX) - Archaea Energy Inc. (LFG), a renewable natural gas firm, said on Monday that it has agreed to be acquired by the British energy major bp (BP.L) for around $26 per share or $4.1 billion.
The consideration is a 38 percent premium to Archaea's volume weighted average share price for the 30 days ending October 14.
Daniel Rice, Chairman of Archaea's Board, said: '.Combining Archaea's RNG assets and our strong development backlog with bp's existing bioenergy business and deep operational and financial resources is the best way to create a stronger platform to achieve Archaea's full potential, while maximizing value for our shareholders.'
Upon the completion of the deal, which is expected by the end of 2022, Archaea will operate as a subsidiary within bp.
LFG is trading up by 52.84 percent at $25.80 per share in pre-market on the New York Stock Exchange.
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