TravelCenters of America Stock Surges. It’s Being Bought by BP for $1.3 Billion.

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Oil giant 

BP

announced Thursday it was acquiring

TravelCenters of America
,
one of the largest servicing centers offering truck repairs and maintenance services.

BP

(ticker: BP) will acquire

TravelCenters of America

(TA) for $86 a share, representing an 84% premium to the average trading price of TravelCenters for the 30 days ended Wednesday. Total equity value of the deal was roughly $1.3 million.

TravelCenters stock surged nearly 71% in premarket trading to $84.50. BP fell 1.3%.

Typically, a company that gets purchased sees a jump in its stock price following an announcement because the acquirer is paying a premium for the transaction. The greater the premium, the higher the chances that shareholders will approve the deal.

The deal is expected to close by mid-year 2023, subject to shareholder approval.

Write to Karishma Vanjani at [email protected]