Devon Energy Corp. agreed to acquire Coterra Energy Inc. for about $21.4 billion in stock with the targets’ SHs receiving 0.7 shares of the acquirer for each share they own. Coterra’s shares fell Monday as much as 4.6% for the biggest intraday drop in almost a month, while Devon slipped as much as 2.6%, per Bloomberg.
When analyzed by ownership type and structure, both Devon Energy and Coterra Energy exhibit highly concentrated and overlapping institutional holders. Large asset managers such as Vanguard, BlackRock, and State Street are the dominant shareholders in both firms, with similar ownership weights. In aggregate, investment advisers, banks, and hedge funds account for more than 90% of outstanding shares, while retail investors represent approximately 1%.
The deal may place minority shareholders at a disadvantage.
New World Invesment Research 
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