US oil companies conclude a £20 billion deal to become the country’s third largest producer

Oil deal: Endeavor Energy is the largest privately owned oil and gas producer in the Permian Basin (pictured)

Oil deal: Endeavor Energy is the largest privately owned oil and gas producer in the Permian Basin (pictured)

One of the US’s most sought-after private oil production companies has been acquired in a deal worth £21bn.

Shale oil producer Diamondback Energy said it will buy Endeavor Energy, the largest private oil and gas producer in the Permian Basin, the largest U.S. oil field.

The deal values ​​the group at £21 billion, including debt, and consists of 117.3 million shares of Diamondback common stock and approximately £6 billion in cash.

The new combined company will be the third-largest oil and gas producer in the region, which is located in Texas and New Mexico, behind Exxon and Chevron.

Diamondback has been in competition with Conoco, which has also been circling Endeavor in recent weeks.

Endeavor was founded in 2000 by billionaire Autry Stevens, who built the company from a single platform in 1979.

Diamondback expects the deal to close in the fourth quarter and its shareholders are expected to own 60.5 percent of the new company.

(tags for translation) Daily Mail

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