Archaea Energy stock soars 51% premarket on news of takeover by BP in $4.1 billion all-cash deal

Archaea Energy Inc.
LFG,
-4.90%
said Monday it has entered an agreement to be acquired by BP PLC
BP,
-2.63%
for about $4.1 billion in cash including about $800 million of debt. The cash consideration of about $26 per Archaea share is equal to a 38% premium over the stock’s volume weighted average share price for the 30 days through Oct. 14. The news sent Archaea shares up 51% premarket. “Archaea will be integral to BP’s existing bioenergy business, which has established key positions in the segment and is one of bp’s key transition growth engines, which is anticipated to further Archaea’s growth into international markets,” the companies said in a joint statement. The deal is expected to close by year-end. Archaea shares are down about 8% in the year to date, while the S&P 500
SPX,
-2.37%
has fallen 25%.