Prime U.S. unbiased oil producer ConocoPhillips mentioned on Friday it acquired a second request from the U.S. Federal Commerce Fee for info on its proposed acquisition of rival Marathon Oil.
ConocoPhillips mentioned each firms acquired the requests on July 11 and are working with the FTC to evaluate the merger.
CONTEXT
Conoco mentioned in Could it could pay $22.5 billion in inventory for Marathon Oil to spice up its output and obtain better economies of scale in U.S. shale fields and in liquefied pure fuel.
Its deal adopted Exxon Mobil’s $60 billion acquisition of Pioneer Pure Sources, Chevron’s proposed $53 billion merger with Hess, Chesapeake Vitality’s $7.4 billion buy of Southwestern Vitality and Occidental Petroleum’s $12 billion bid for CrownRock.
WHY IT’S IMPORTANT
The request for added info is prone to gradual the closing of the deal. ConocoPhillips had mentioned in Could a “conservative” estimate of when the deal will shut is the fourth quarter of this yr, pushing aside a full realization of the anticipated value financial savings and advantages from shared gear and employees. It reiterated the timeframe on Friday.
The 2 firms have operations in West Texas, South Texas and North Dakota’s shale fields.
BY THE NUMBERS
The Conoco-Marathon mixture would create an organization pumping 2.26 million barrels of oil and fuel per day, and add 1.32 billion barrels of proved reserves to ConocoPhillips’ 6.8 billion.
The supply of 0.255 shares of ConocoPhillips for every share of Marathon represented a 14.7% premium to the corporate’s pre-deal closing worth.
(Reporting by Gary McWilliams and Sourasis Bose; Modifying by Krishna Chandra Eluri)
Lead picture (Credit score: Reuters)
