ONEOK's Acquisition of Magellan Midstream Partners Raises Investor Concerns.

Shares of ONEOK fell about 9% on Monday following concerns about potential synergies from its deal to acquire Magellan Midstream Partners for $18.8 billion in cash and stock. Analysts say the businesses are quite distinct and the potential value from the deal depends heavily on the impact on ONEOK's future tax liabilities. Magellan, registered as a master limited partnership, would provide about $1.5 billion in tax benefits to ONEOK between 2024 and 2027 as part of the conversion. The combined company will have 44% of its business in transporting natural gas liquids, 21% in refined products, 7% in crude products, 10% in gas pipelines and 18% in gathering and processing.