![ConocoPhillips to buy Marathon for $22.5 bn in latest big oil deal](https://www.berlinertageblatt.de/media/shared/articles/04/f1/4b/ConocoPhillips-to-buy-Marathon-for--499312.jpg)
-
Biden team, end in sight, keeps hope on Gaza truce despite setbacks
-
Sabalenka dedicates US Open to family 'who never gave up' on dream
-
Venezuela takes diplomatic jab at Brazil in spat over election
-
Multiple people shot along highway in US state of Kentucky
-
'Super proud' Sabalenka downs Pegula to win US Open thriller
-
In Papua New Guinea, Pope holds mass 'at the edge of the world'
-
Hewett stays positive for wheelchair tennis despite agonising defeat
-
Three things on US Open champion Aryna Sabalenka
-
Sabalenka downs Pegula to win US Open thriller
-
USA men land Paralympic basketball three-peat, Jiang takes 7th swim gold
-
USA slump to first home defeat against Canada in 67 years
-
Argentina hand Australia record 67-27 loss in Rugby Championship
-
England impress on Carsley bow, Germany, Dutch hit five
-
AFP photographer wins top prize for Gaza coverage
-
No Love for Packers for three weeks after ligament sprain: reports
-
Pedro Almodovar: chronicler of modern Spain crowned in Venice
-
Almodovar wins top Venice prize for end-of-life film
-
Trump sounds dark tone at rally, Harris 'ready' for debate
-
Wirtz and Musiala dazzle to kick-start new Germany era
-
Chinese teenager takes 7th gold of Paris Paralympics
-
England interim boss Carsley 'respects' divided opinions over anthem
-
Neuville moves to the front in the Acropolis Rally
-
Garfield, Pugh charm Toronto in new romance 'We Live in Time'
-
21 boys confirmed dead in Kenya school inferno
-
Over 100,000 protest in France against new prime minister
-
Golden 30 minutes takes China to swimming Paralympics swimming domination
-
Green leads Australia to T20 series sweep of Scotland
-
Nigeria, Cameroon win afer chaotic AFCON build-ups
-
Nicole Kidman: A-lister, cinematic chameleon, wins in Venice
-
'I had to prove myself', says Kolisi after win against All Blacks
-
Almodovar wins top prize at Venice film festival
-
Grealish savours England redemption after 'worst summer'
-
Carsley makes flying start as England interim boss in win over Ireland
-
Springboks close on Rugby Championship with storming win over All Blacks
-
Sri Lanka's De Silva and Kamindu Mendis defy England in third Test
-
Farrell's Racing lose on opening day of Top 14
-
Ireland and UK to 'reset' relations as Starmer visits Dublin
-
Dunbar takes second Vuelta stage as Roglic closes in on victory
-
Fritz eyes US Open glory to end 21 years of American hurt
-
Thousands protest in France against new prime minister
-
Death toll from Kenya school blaze rises to 21
-
Brazil's right rallies for 'freedom' after X suspended
-
Trump to hold rally in swing state, Harris preps for debate
-
Stone at the double as Sri Lanka collapse against England in third Test
-
French tennis player takes legal action over online abuse
-
Italy backs Kyiv's 'legitimate defence' as Zelensky presses allies
-
The Body Shop rescued from administration after deal
-
Martin roars to victory in San Marino sprint, extends MotoGP lead
-
Smoke and screams: The horror of Kenya's school dorm inferno
-
MotoGP leader Martin roars to victory in San Marino sprint
![ConocoPhillips to buy Marathon for $22.5 bn in latest big oil deal](https://www.berlinertageblatt.de/media/shared/articles/04/f1/4b/ConocoPhillips-to-buy-Marathon-for--499312.jpg)
ConocoPhillips to buy Marathon for $22.5 bn in latest big oil deal
US energy giant ConocoPhillips announced Wednesday that it is acquiring competitor Marathon Oil for $22.5 billion in the latest big petroleum merger consummated in spite of rising concerns about climate change.
The all-stock transaction combines two familiar Houston-based oil players, expanding the larger ConocoPhillips' US holdings and potentially providing massive cost savings.
The acquisition "further deepens our portfolio and fits within our financial framework, adding high-quality, low cost of supply inventory," ConocoPhillips chairman and chief executive officer Ryan Lance said in a company statement.
The deal, which includes the assumption of $5.4 billion in Marathon debt, is the latest in a series of acquisitions in the US oil sector, extending the lifespan of petroleum at a time when climate change advocates are pressuring producers to transition to carbon-free energy.
It will enable ConocoPhillips to strengthen its position in shale oil and gas-rich regions such as the Bakken Basin in the northern United States, the Eagle Ford fields in Texas and the Permian Basin in Texas and New Mexico.
A company presentation highlighted the proximity of Marathon's acreage in these regions to ConocoPhillips' holdings, creating potential economies of scale.
The deal should see ConocoPhillips achieve savings of $500 million in the year after completion, according to a ConocoPhillips press release, largely due to reduced administrative and production costs.
ConocoPhillips pledged to return excess cash to shareholders, saying it plans to boost its dividend by 34 percent and expects more than $20 billion in share repurchases over the next three years.
The deal, which is expected to close in the fourth quarter of this year, gives Marathon Oil shareholders 0.255 shares of ConocoPhillips common stock for each share of Marathon Oil common stock.
That represents a 14.7 percent premium over Marathon Oil's closing price on Tuesday.
A note from JPMorgan Chase said the takeover solves a challenging outlook for Marathon, which has done "an excellent job in the field" but would have needed to do more "to address inventory renewal over time."
The 15 percent premium was an "attractive alternative", said the JPMorgan note.
Shares of Marathon jumped 9.1 percent in morning trading, while ConocoPhillips fell 3.1 percent.
- Chevron deal speed-bump -
ConcoPhillips is the third biggest US oil company by market capitalization after ExxonMobil and Chevron, both which announced major petroleum-focused takeovers last year.
The deals have come in spite of rising global recognition of climate change, resulting in a landmark agreement at December climate talks in which nearly 200 countries agreed that the world will be "transitioning away from fossil fuels" in order to achieve net-zero emissions by 2050.
However, while US oil companies have faced pressure from climate-focused NGOs and investors to accelerate climate-friendly investments, demand for conventional petroleum has remained firm.
The ConocoPhillips deal follows ExxonMobil's $60 billion takeover of Pioneer Natural Resources, which closed earlier this month.
Chevron's proposed $53 billion takeover of Hess cleared one hurdle on Monday after Hess shareholders voted to approve the transaction.
However, the Hess deal hit a speed-bump earlier this year due to a challenge by ExxonMobil over the transaction's effect on ExxonMobil's holdings in Guyana.
Chevron has indicated it could walk away from the deal if arbitration is unsuccessful.
J.Fankhauser--BTB