6 big deal reports: Pioneer stock soars on Exxon buyout whispers

By Davit Kirakosyan

Investing.com — Here is your daily Pro Recap of the biggest head-turning deal dispatches you may have missed this week: reports of Exxon’s buyout talks with Pioneer, plus Emerson’s agreement to take out National Instruments, Teck Resources’ rejection of Glencore’s overtures, and more.

Pioneer Natural Resources shares soar on the possible acquisition by Exxon

Pioneer Natural Resources (NYSE:PXD) shares rose more than 5% on Monday following the Wall Street Journal’s report that the company held “preliminary talks” with Exxon Mobil (NYSE:XOM) about a possible acquisition.

The report, which cited people familiar with the matter, noted that Exxon has held M&A talks with at least one other company, but Pioneer, which is the third-largest oil producer after Chevron (NYSE:CVX) and ConocoPhillips (NYSE:COP) in the Permian basin and the biggest in the U.S., is likely a top target.

Analysts suggest that Pioneer and other exploration and production companies might get acquired in the upcoming quarters, as oil giants like Exxon aim to boost their inventory.

Stifel cut its price target on Pioneer Natural Resources to $286.00 from $293.00 while maintaining a Buy rating. The analysts noted they see Pioneer and Endeavor Energy (private Midland operator) as the most likely targets for Exxon.

Moreover, based on its evaluations of rig intensity, valuation, and comparative performance, Stifel believes that a deal would be feasible for Exxon, but challenging for Pioneer to digest, especially since it has experienced approximately 40% underperformance in the last year. Overall, the firm considers the possibility of an immediate deal as unlikely, unless it comes with a premium of at least 25%.

Meanwhile, Bernstein raised its price target on Pioneer Natural Resources to $262.00 from $241.00 while maintaining an Outperform rating.

Pioneer Natural Resources shares rose more than 10% this week.

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Emerson to acquire National Instruments for $8.2 billion

National Instruments (NASDAQ:NATI) shares surged nearly 20% on Wednesday on news it will be acquired by Emerson Electric (NYSE:EMR), which already owns approximately 2% of NI, for $60 per share in cash at an equity value of $8.2B.

The transaction is expected to close in Emerson’s H1/24, subject to the completion of customary closing conditions, including regulatory approvals and approval by National Instruments’ shareholders.

Emerson also reaffirmed its Q2 sales growth guidance of 8%-10% and adjusted EPS guidance of $0.95-$1.00. The company will report its Q2 results on May 2. Consensus estimates stand at $0.98 for EPS and $3.65B for revenues.

Emerson shares gained more than 3% this week.

Teck Resources rejects Glencore’s revised acquisition offer

Teck Resources (NYSE:TECK) announced on Monday that its board unanimously rejected an unsolicited revised offer from Glencore (LON:GLEN) (OTC:GLNCY).

Glencore’s initial $22.5B bid was made on April 3, which resulted in a more than 19% jump in Teck Resources’ shares that day.

“Glencore has made two opportunistic and unrealistic proposals that would transfer significant value to Glencore at the expense of Teck shareholders,” said Sheila Murray, Teck’s Chair of the Board.

Teck Resources noted that they are fully confident that Teck’s planned separation of Teck Metals and Elk Valley Resources approved on April 26, creates a greater spectrum of value-enhancing opportunities for both companies.

Teck Resources shares rose nearly 3% this week, while Glencore closed the week with more than a 7% gain.

3 more deals

Siriuspoint (NYSE:SPNT) shares gained 10% on Wednesday after the company acknowledged an indication of interest from Dan Loeb’s Third Point LLC to explore a potential acquisition of all, or substantially all, of its outstanding shares.

SiriusPoint Board of Directors will carefully evaluate any acquisition proposal, if and when a proposal is received.

Newmont Goldcorp (NYSE:NEM) submitted a revised best and final offer at A$29.4B ($19.5B) to the Board of Directors of Newcrest Mining (ASX:NCM) (OTC:NCMGY) to acquire all of its shares by way of an Australian Scheme of Arrangement, under which Newcrest shareholders would receive 0.4x Newmont shares per each Newcrest share held. Furthermore, Newcrest would have the right to pay its shareholders a special dividend of up to $1.10 per share.

If successful, the deal, which is 16% higher than Newmont’s initial proposal, would be the third-largest deal ever involving an Australian company and the third-largest globally in 2023.

Newcrest shares closed the week with more than a 5% gain.

Triton International (NYSE:TRTN) shares jumped more than 32% on Wednesday after the announcement that it will be acquired by Brookfield Infrastructure (NYSE:BIP) in a cash and stock transaction valuing the company’s common equity at approximately $4.7B, placing Triton’s enterprise value at around $13.3B.

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