Exxon Mobil is in discussions to spend $60 billion to acquire competitor Pioneer Natural Resources in the shale industry

 Exxon Mobil is in discussions to spend $60 billion to acquire competitor Pioneer Natural Resources in the shale industry

According to Reuters, Exxon Mobil is negotiating to acquire US competitor Pioneer Natural Resources for roughly $60 billion. The acquisition would be Exxon's biggest since it paid $81 billion to acquire Mobil Oil in 1998, and it would be the largest by any firm this year.

According to the Reuters article, which cited individuals familiar with the matter, Exxon is anticipated to make Pioneer a pure stock offer valued at more than $250 per share.

Tuesday's trading for Pioneer shares ended at $237.41. Since the initial news of a deal broke last Thursday, the stock has risen 11%.

Exxon has emerged from severe losses and massive debts over the last two years by lowering expenses, liquidating dozens of assets, and profiting from high oil prices sparked by Russia's invasion of Ukraine, according to the research.

Two years after losses reached $22 billion during the COVID-19 outbreak, Exxon posted a record $56 billion profit in 2017.

The agreement would give four of the biggest US oil firms control over much of the Permian Basin's massive oilfield infrastructure and shale sector.

Exxon and Pioneer had a decent chance of completing their merger, antitrust experts told Reuters last week, despite the fact that they would be subject to intense scrutiny. This is due to the possibility that they will only make up a tiny portion of the enormous worldwide market for oil and gas.

In the meanwhile, Pioneer, which has very low production costs of about $10.50 per barrel of oil and gas, is the third-largest oil producer in the Permian region, after ConocoPhillips and Chevron Corp.

In New York trading on Tuesday, Pioneer's stock price increased 0.8% to settle at $237.41, giving the business a market worth of roughly $55 billion. The shares increased by as much as 3% further after normal trading ended. 

The market value of Exxon dropped by 0.4% to $110.45, or nearly $442 billion.