Oil deal: Endeavor Energy is the largest privately held oil and gas producer in the Permian Basin (pictured)
One of the United States’ most sought-after private oil producers has been snapped up in a deal worth £21billion.
Shale producer Diamondback Energy said it would buy Endeavor Energy, which is the largest privately held oil and gas producer in the Permian Basin, the biggest US oilfield.
The deal values the group at £21billion, including debt, and consists of 117.3m shares of Diamondback common stock and around £6billion 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 in competition with Conoco, which had also been circling Endeavour in recent weeks.
Endeavor was set up in 2000 by billionaire Autry Stephens, who built the business up from a solitary rig in 1979.
Diamondback expects the deal to close in the fourth quarter and its stockholders are expected to own 60.5 per cent of the new firm.