What Happened?
Shares of fluid and gas handling company MRC (NYSE: MRC) jumped 16.4% in the morning session after the company agreed to be acquired by rival DNOW Inc. (NYSE: DNOW) in an all-stock transaction valued at approximately $1.5 billion.
The deal creates a combined entity described as a "premier energy and industrial solutions provider" with over 350 locations in more than 20 countries.
Under the agreement, MRC Global shareholders will receive 0.9489 shares of DNOW common stock for each MRC share they own. This represents a premium of 8.5% to MRC Global's 30-day volume-weighted average price as of June 25, 2025. The merger is expected to generate significant cost savings, with the companies targeting $70 million in annual synergies within three years.
The transaction, which has been unanimously approved by both boards of directors, is anticipated to close in the fourth quarter of 2025, pending shareholder and regulatory approvals. Upon completion, DNOW shareholders will own about 56.5% of the combined company, with MRC Global shareholders holding the remaining 43.5%.
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What The Market Is Telling Us
MRC Global’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. But moves this big are rare even for MRC Global and indicate this news significantly impacted the market’s perception of the business.
MRC Global is up 20.5% since the beginning of the year, and at $15.31 per share, has set a new 52-week high. Investors who bought $1,000 worth of MRC Global’s shares 5 years ago would now be looking at an investment worth $2,475.
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