Latham & Watkins Advises on US$2.1 Billion Merger of California Resources Corporation With Aera Energy

California Resources Corporation (NYSE: CRC) has announced the signing of a definitive merger agreement to combine with Aera Energy, LLC (Aera) in an all-stock transaction. The transaction values Aera at approximately US$2.1 billion, inclusive of Aera’s net debt and certain other obligations, and is expected to be immediately accretive. At closing, Aera's owners will receive 21.2 million shares of CRC’s common stock, equal to approximately 22.9% of CRC’s fully diluted shares. Aera is owned by entities managed by IKAV (51%), an international asset management group, and Canada Pension Plan Investment Board (CPP Investments) (49%). Post closing, IKAV-managed entities and CPP Investments will collectively hold 22.9% of CRC’s common stock.

Latham & Watkins LLP represents Aera and its owners, IKAV, and CPP Investments, in the transaction with a corporate deal team led by New York partner David Allinson and Houston partner Thomas Brandt, with associate Ransel Potter.