LONDON (ShareCast) - (Sharecast News) - ConocoPhillips has agreed to buy exploration and production company Concho Resources in all-share deal valued at $9.7bn.
Under the terms of the transaction, which has been unanimously approved by the boards of directors of both companies, Concho shareholders will receive 1.46 ConocoPhillips shares for each of their shares.

ConocoPhillips said the deal transaction combines "two high-quality industry leaders to create a company with an approximately $60bn enterprise value that will offer stakeholders a superior investment choice for sustainable performance and returns through cycles".

The companies expect to capture $500m of annual cost and capital savings by 2022.

ConocoPhillips chairman and chief executive officer Ryan Lance said: "The leadership and boards of both companies believe today's transaction is an affirmation of our commitment to lead a structural change for our vital industry.

"Concho is a tremendous fit with ConocoPhillips. Together, ConocoPhillips and Concho will have unmatched scale and quality across the important value drivers in our business: an enviable low cost of supply asset base, a strong balance sheet, a disciplined capital allocation approach, ESG excellence and great people."

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