California Resources Corporation (CRC) has announced a significant corporate transaction involving the merger with Berry Corporation (BRY), through its wholly-owned subsidiary, Dornoch Merger Sub, LLC. This merger agreement, dated September 14, 2025, positions Berry as a direct, wholly-owned subsidiary of CRC upon completion.
The financial terms of the deal specify that Berry stockholders will receive 0.0718 shares of CRC common stock for each share of Berry common stock they hold, translating to a per-share value of approximately $3.81 based on CRC's closing stock price on September 12, 2025. This valuation highlights the strategic premium CRC is willing to pay to integrate Berry’s assets and operational capabilities into its portfolio.
This merger is not only about financial metrics; it represents a strategic move for CRC to bolster its foothold in California's energy market. By acquiring Berry, CRC aims to expand its production capacity and enhance operational efficiencies, which are critical in today’s competitive energy landscape. The Berry Board of Directors has unanimously endorsed the merger, deeming it to be in the best interests of Berry stockholders, and is recommending their approval at an upcoming special meeting.
The special meeting for Berry stockholders is set to occur virtually, with the exact date to be confirmed. During this meeting, stockholders will be invited to vote on the merger agreement, alongside proposals regarding executive compensation and potential meeting adjournments. The completion of the merger is contingent upon stockholder approval and the satisfaction of other conditions as outlined in the merger agreement.
For shareholders and employees, the merger could yield a variety of implications. Shareholders of Berry will receive CRC stock, which may experience fluctuating market values, while employees may face new opportunities or challenges as the two companies integrate.
From a regulatory standpoint, the merger is subject to standard antitrust reviews and other regulatory approvals, ensuring compliance with federal and state laws. As the companies navigate through these requirements, both CRC and Berry are optimistic about the strategic benefits this merger will bring to their combined operations.
In summary, this merger marks a pivotal moment for both California Resources Corporation and Berry Corporation, aimed at creating a more robust player in the oil and gas industry, equipped to tackle both current market challenges and future growth opportunities.