ONEOK to buy Magellan Midstream Partners in deal valued at $18.8 billion

(Reuters) - ONEOK Inc agreed to buy Magellan Midstream Partners in a cash and stock deal valued at around $18.8 billion including assumed debt to diversify in the midstream oil and gas industry, the company said on Sunday.

ONEOK will pay $25 and 0.6670 shares of ONEOK common stock for each outstanding Magellan common unit.

The deal is expected to be accretive to earnings per share beginning in 2024, with EPS accretion of 3% to 7% per year from 2025 through 2027, ONEOK said in a statement.

Magellan will be merged into a wholly owned subsidiary of ONEOK, with ONEOK CEO Pierce Norton continuing to serve as chief executive officer of the combined company.

(Reporting by Jyoti Narayan in Bengaluru; Editing by Cynthia Osterman and Lisa Shumaker)