The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
ConocoPhillips is in talks to acquire rival Concho Resources Inc, according to people familiar with the matter, as one of America’s largest independent oil explorers looks to make a bold bet on shale during an historic industry downturn.
The companies may announce a deal in the next few weeks, said the people, who asked to not be identified because the matter isn’t public. Shares of Concho declined 1.3% in New York trading on October 13, giving the Midland, Texas-based company a market value of $8.7 billion.
Conoco was down 2% at $34.88, translating into a market value of about $37 billion. No final decision has been made and talks could fall through, the people said. Representatives for Conoco and Concho didn’t immediately respond to requests for comment.
The potential combination would be the latest sign that long-expected consolidation in the shale patch has finally
arrived.
A purchase of Concho, which has an enterprise value of
$12.3 billion, could become the year’s largest takeover of an oil and gas company, according to data compiled by Bloomberg.