Despite recent gains, ONEOK still warrants a marginal 'buy' rating due to expected synergies and significant cash flows from recent acquisitions. Read more here.

The deal is subject to the approval of a majority of the outstanding EnLink common units and other customary closing conditions.

ONEOK Inc., a US-based pipeline operator, announced Sunday it will acquire the remaining shares of EnLink Midstream in a $4.3 billion all-stock deal. The move aims to strengthen ONEOK’s position in the Permian Basin and capitalize on the ongoing consolidation in the U.S. energy sector.

US pipeline operator Oneok Inc. will acquire the common units of EnLink Midstream LLC it doesn’t own for $4.3 billion, according to a statement.

EnLink Midstream, LLC (NYSE:ENLC) shares traded higher premarket on Monday after it disclosed a merger deal with ONEOK, Inc. (NYSE:OKE) for $4.3 billion. As per the deal, each EnLink common unit not owned by ONEOK will be exchanged for 0.

EnLink Midstream previously bought Houston-based Crestwood Equity Partners LP’s Barnett Shale assets for $275 million. Crestwood was later acquired by Dallas-based Energy Transfer LP (NYSE: ET) for $7.1 billion.

Oneok shares will be used to acquire all of the outstanding publicly held units of EnLink Midstream for $4.3 billion.

ONEOK, Inc. OKE announced that it has signed a definitive merger agreement, under which it will acquire all of the outstanding publicly held common units of EnLink Midstream ENLC for $4.3 billion in ONEOK common stock.