Exxon will acquire its rival Pioneer for approximately $59.5 billion

US oil and natural gas producer Exxon Mobil has agreed to buy rival Pioneer Natural Resources for shares worth $59.5 billion.

Exxon will thus become the largest producer of the largest oil field in the United States, ensuring a decade of low-cost production.

The deal would be the largest acquisition by any company this year, as well as Exxon’s largest acquisition since it bought Mobil Oil for $81 billion in 1998.

SHARES INCREASED 1.1 PERCENT

Exxon offered $253 per Pioneer share, according to the companies’ statement.

Pioneer shares, which closed yesterday at $237.41, rose 1.1 percent to $239.98 in pre-market trading. Exxon shares were flat.

Exxon has saved itself from huge losses and massive debt over the past two years by cutting costs, selling dozens of assets and taking advantage of the high energy prices created by the Russian invasion of Ukraine.

The agreement will give four of the largest American oil companies control of a large part of the Permian Basin oil field and extensive oil infrastructure. (REUTERS)