In a significant move aimed at curbing carbon emissions, ExxonMobil (NYSE:XOM) has finalized its acquisition of Denbury (NYSE:DEN) for a substantial $4.9 billion. The transaction, conducted entirely through the stock exchange, was valued at $89.45 per share based on ExxonMobil’s closing price on Wednesday. Both companies confirmed the completion of the deal on Thursday, with the closing expected to take place in the fourth quarter of 2023.

Exxon’s acquisition of Denbury aligns with the energy giant’s broader strategy of reducing carbon emissions. With a commitment to achieving net-zero emissions by 2050, Exxon views Denbury’s extensive CO2 pipeline network as a valuable asset in accomplishing this ambitious goal. Denbury, known for its expertise in carbon capture, utilization, and storage (CCS) solutions, operates the largest CO2 pipeline in the United States, stretching over 1,300 miles across multiple states including Louisiana, Texas, and Mississippi.

In the previous year, the company purchased a 49.9% stake in Biojet AS, a Norwegian firm focused on converting forestry and wood-based construction waste into biofuels and biofuel components.

Additionally, Exxon, together with ten other companies, has proposed the establishment of a substantial carbon capture and storage hub in the Houston industrial region. This ambitious initiative aims to capture approximately 100 million metric tons of CO2 annually by 2040, derived from emissions produced by refineries, chemical plants, and power generation facilities in the area. Such a reduction in greenhouse gas emissions would be equivalent to the output of more than 20 million gasoline-powered passenger vehicles.

Following the news of the acquisition, Exxon’s shares experienced a slight decline of nearly 2%, settling at $104 per share. Similarly, Denbury’s shares dipped by approximately 1.3%, trading at just above $86 per share.

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