ConocoPhillips has agreed to acquire Marathon Oil Corporation in a multi-billion dollar deal, expected to close by the end of this year. The acquisition will involve Marathon shareholders receiving 0.2550 shares of ConocoPhillips common stock for each share of Marathon Oil common stock, with an enterprise value of $22.5 billion and net debts of $5.4 billion. The transaction is valued at $17 billion and is subject to stockholder approval, regulatory clearance, and other closing conditions, with completion expected in Q4, 2024.
ConocoPhillips will gain access to over two billion barrels of oil reserves through the acquisition, providing an estimated $500 million in cost savings within the first year. The company’s portfolio will be enhanced with high-quality, low-cost supply inventory adjacent to its leading U.S. unconventional position.
The deal is part of a trend in the industry, with other major players making similar moves and facing regulatory scrutiny. The FTC has cleared some deals, like ExxonMobil’s acquisition of Pioneer, while opening investigations into others, such as Chevron’s acquisition of Hess. Despite concerns about market concentration and reduced competition, some experts believe that the mergers could lead to increased efficiency and lower costs for consumers. Please rewrite this sentence.
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