Phillips Petroleum Co. has agreed to buy Conoco Inc. for about 15.4 billion dollars in stock, creating the world`s sixth-largest oil and gas company, in terms of reserves and production, at a time of tremendous industrywide consolidation, international media agencies reported.
Phillips, which bought the refining company Tosco Corp. for 7 billion dollars earlier this year, will gain extra strength as a producer of petroleum. The combined market value of the new company would be 35 billion dollars based on Friday`s closing price of each company`s shares. Phillips would also assume roughly 8 billion dollars in debt, reports AP. Under the terms of the deal, which was approved by the boards of both companies yesterday and described by the two rivals as a merger of equals, the combined company, `ConocoPhillips`, would have reserves of 8.7 billion barrels of oil equivalent, daily production of 1.7 million barrels and 18.6 billion dollars in debt and preferred securities. The merger is expected to close during the second half of 2002 pending regulatory and shareholder approval.
Bureau Report