Oil deal: Endeavor Energy is the largest private oil and gas producer in the Permian Basin (pictured)
One of America’s most sought-after private oil producers has been acquired in a deal worth £21bn.
Shale producer Diamondback Energy said it would buy Endeavor Energy, which is the largest private oil and gas producer in the Permian Basin, the largest oil field in the United States.
The deal values the group at £21bn, including debt, and consists of 117.3m Diamondback ordinary shares and around £6bn in cash.
The new combined company will be the third largest oil and gas producer in the region, which is located in Texas and New Mexico, behind Exxon and Chevron.
Diamondback had been competing with Conoco, which had also been circling Endeavor in recent weeks.
Endeavor was founded in 2000 by billionaire Autry Stephens, who built the business from a solitary platform in 1979.
Diamondback expects the deal to close in the fourth quarter and its shareholders are expected to own 60.5 percent of the new company.