US Stock Market Move | The American shale oil and gas industry sees another major merger with Coterra Energy (CTRA.US) being acquired by Devon Energy Corporation (DVN.US). The former's stock dropped over 1.7%.

On Monday, Coterra Energy (CTRA.US) stock price fell, as of the time of publication, the stock dropped over 1.7% to $28.345. Devon Energy Corporation (DVN.US) announced that it will acquire Coterra Energy for approximately $21.4 billion in an all-stock deal, making it one of the largest oil and gas transactions in recent years. According to the agreement, Coterra Energy shareholders will receive 0.7 shares of Devon stock for each share they hold, and the merged company will continue to operate under the Devon name, with current CEO Clay Gaspar remaining in charge. The deal is expected to be completed in the second quarter of this year and is expected to result in approximately $1 billion in pre-tax synergies. This consolidation will strengthen the two companies' presence in the Permian Basin, the largest oil field in the United States, with a combined daily production exceeding 1.6 million barrels of oil equivalent and a total enterprise value of approximately $58 billion.