ONEOK Inc (NYSE: OKE ). and Magellan Midstream (NYSE: MMP ) Partners L.P. confirmed on Friday that their proposed merger has been approved by the respective stakeholders of both companies. This major consolidation within the energy sector is now set to move forward, following a strong endorsement from shareholders at special meetings.
At ONEOK's Special Shareholders Meeting, preliminary results indicated that approximately 96% of the common shares voted were in favor of the merger. This strong backing highlights the shareholders' belief in the strategic advantages of this transaction.
Meanwhile, Magellan's Special Meeting of Unitholders also showed substantial support for the merger. Preliminary results revealed that around 76% of the common units voted were cast in favor. This equates to roughly 111.2 million units, representing 55% of outstanding units.
The approval from stakeholders comes after the proposal of this merger was first announced in May this year. ONEOK had agreed to acquire all outstanding units of Magellan Midstream Partners through a cash-and-stock transaction. The value of this acquisition, inclusive of assumed debt, is estimated to be approximately $18.8 billion.
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