ConocoPhillips, the third largest US oil concern, today said that it had bought competitor Burlington Resources in a deal worth $35.6 billion.
The acquisition will place ConocoPhillips within reach of oil industry giants ExxonMobil and ChevronTexaco.
According to the latest stock values for both companies, the new merged concern is valued at $135 billion with an accrued debt of $29 billion.
Under the terms of the agreement, which still has to be approved by Burlington Resources shareholders, ConocoPhillips stockholders will control 83%of the new group.
Weekend newspaper reports, which predicted the purchase, described it as the biggest oil sector deal since a string of massive mergers in the late 1990s and early 2000s.
'With this transaction, ConocoPhillips will expand our portfolio of high quality, low-risk, long-lived gas reserves, and become a leading producer of natural gas in North America,' the group's chairman and CEO Jim Mulva said in a joint statement.
The deal 'recognises the substantial value' of Burlington Resources, Burlington's chairman and CEO Bobby S Shackouls addded.
'Of equal importance, this transaction allows our shareholders, customers and employees to participate in the future growth of ConocoPhillips, a company that has the scale and scope to supply consumers from every facet of the oil and gas industry more efficiently,' the joint statement said.
