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Oneok buying Southwest Gas
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December 15, 1998: 9:37 a.m. ET
$1.8B deal to create nation's largest stand-alone natural gas distributor
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NEW YORK (CNNfn) - Oneok Inc. will buy Southwest Gas Corp., the companies said Tuesday, creating the largest stand-alone gas distribution company in the country.
Oneok (OKE), based in Tulsa, Okla., will pay $28.50 per share for Las Vegas-based Southwest Gas (SWX) common stock outstanding, valuing Southwest Gas at about $1.8 billion, including assumed debt.
The resulting company will serve 2.6 million customers in five states. Oneok said it will be the primary gas distribution company in Arizona, Kansas, Nevada and Oklahoma, and also have a strong presence in California.
Southwest Gas will operate as a division of Oneok and retain its name in the local markets it serves. Larry Brummett, Oneok's chairman and chief executive officer, said the merger isn't expected to result in employee lay-offs.
The deal is expected to close during the fall of 1999. Oneok closed up 1/4 Monday at 33-1/2. Southwest Gas was down 5/8 at 23-3/4. 
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