Purchases from the oil sector are back. ConocoPhillips has reached an agreement to acquire Concho Resources, via stock exchange. The transaction is valued at 9.7 billion dollars (more than 8.2 billion euros) and will create a giant of the sector of more than 60,000 million dollars. (about 50.9 billion euros).
The operation will be carried out through the delivery of 1.46 shares of ConocoPhillips for each title of Concho Resources and will generate annual synergies of 500 million dollars, for the year 2022.
"Concho is a perfect fit with ConocoPhillips. Together, they will have unmatched scale and quality," said Ryan Lance, president and CEO of ConocoPhillips.
It's about the Lance's first operation as CEO of the oil company, which aspires with this movement to make a leap in cash generation, and thus resumes operations in the sector after the coronavirus crisis.
The acquisition has led ConocoPhillips to open Monday's session in negative, with a fall of 0.6%; while Concho Resources has stopped hiring.