MRC Global gains on $1.5 billion acquisition by DNOW

Shares of global energy equipments distributor MRC Global MRC.N up 13.5% at $15.13 premarket

Energy and industrial products supplier DNOW DNOW.N on Thursday said it would buy MRC Global MRC.N in an all-stock deal valued at $1.5 billion, including debt

The combined company will operate over 350 service and distribution locations in over 20 countries

Expected to generate $70 million of annual cost synergies within three years following closing

Deal also expected to be accretive to adjusted earnings per share in the first year following closing

Under the agreement, MRC shareholders will receive 0.9489 of DNOW shares for each MRC share

Transaction expected to close in Q4

As of last close, MRC shares up 4.2% YTD