ConocoPhillips, Marathon Oil get second US FTC request over $22.5 billion deal
Tweet
Share
E-mail
The logo of American oil and natural gas exploration and production company ConocoPhillips is seen during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren
(Reuters) - Top U.S. independent oil producer ConocoPhillips said on Friday it received a second request from the U.S. Federal Trade Commission for information on its proposed acquisition of rival Marathon Oil.
ConocoPhillips said both companies received the requests on July 11 and are working with the FTC to review the merger.
CONTEXT
Conoco said in May it would pay $22.5 billion in stock for Marathon Oil to boost its output and achieve greater economies of scale in U.S. shale fields and in liquefied natural gas.
Its deal followed Exxon Mobil's $60 billion acquisition of Pioneer Natural Resources, Chevron's proposed $53 billion merger with Hess, Chesapeake Energy's $7.4 billion purchase of Southwestern Energy and Occidental Petroleum's $12 billion bid for CrownRock.
WHY IT'S IMPORTANT
The request for additional information is likely to slow the closing of the deal. ConocoPhillips had said in May a "conservative" estimate of when the deal will close is the fourth quarter of this year, putting off a full realization of the expected cost savings and benefits from shared equipment and staff. It reiterated the timeframe on Friday.
The two companies have operations in West Texas, South Texas and North Dakota's shale fields.
BY THE NUMBERS
The Conoco-Marathon combination would create a company pumping 2.26 million barrels of oil and gas per day, and add 1.32 billion barrels of proved reserves to ConocoPhillips' 6.8 billion.
The offer of 0.255 shares of ConocoPhillips for each share of Marathon represented a 14.7% premium to the company's pre-deal closing price.
(Reporting by Gary McWilliams and Sourasis Bose; Editing by Krishna Chandra Eluri)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Kimi K3 AI breakthrough: What Wall Street analysts say about China’s OpenAI threat
- Truecaller to acquire US-based TextPlus for $15 million
- Elutia agrees to sell SimpliDerm unit for up to $11 million
Create E-mail Alert Related Categories
General News, Mergers and Acquisitions, ReutersRelated Entities
Definitive AgreementSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
