It could be a big day on the ASX for this suddenly-massive company. At market open the Santos Ltd (ASX: STO) share price is already heading up, 1.08% at the time of writing to $6.55.
Santos has hit the market as an approximately $22 billion entity today following the finalisation of its merger with Oil Search.
Let's take a look at what's driving the oil and gas giant's stock on Monday.
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Santos share price rises amid finalised merger
Today marks the first day the ASX has opened without Oil Search. Instead, it has heralded a much larger gas and oil producer.
The merger of the 2 companies was given its final green light on Friday afternoon.
By Friday evening, Oil Search's stock had been pulled from the ASX and the Papua New Guinea Stock Exchange.
It followed on from a rocky merger process which saw delays from the Papua New Guinea National Court and an expert finding the transaction undervalued Oil Search shares.
Santos and Oil Search's all scrip merger will see Oil Search shareholders receiving 0.6275 Santos shares for every Oil Search security they hold.
The new shares begin trading on a deferred settlement basis today, and on a normal settlement basis on 20 December.
Following the transaction, the oil and gas giant will have pro-forma 2021 production of around 117 million barrels of oil equivalent.
The company will also welcome 3 Oil Search directors to its board.
According to the ASX, at its current share price, Santos has a market capitalisation of around $13.49 billion. But that could change today, as the market might look to revalue the now-conjoined company.
Additionally, the Life360 Inc (ASX: 360) share price is one to keep an eye on following the merger's finalisation today. The software development company was flagged as the replacement for Oil Search in the S&P/ASX 200 Index (ASX: XJO). While its share price surged 12% on the back of the news, in early trade on Monday the Life360 share price is down 1.89%.
