Oil and gas firm Diamondback Energy (FANG.O) said on Monday it had received a second request from the U.S. Federal Trade Commission (FTC) in connection with the $26 billion deal to buy privately-held Endeavor.
The U.S. antitrust regulator has asked for additional information and documentary material as part of its review of the proposed merger.
CONTEXT
Midland, Texas-based Diamondback had said in February it would buy privately held rival Endeavor Energy Partners in a cash-and-stock deal, which is expected to close in the fourth quarter.
The combined company would be the third-largest oil and gas producer in the Permian Basin of West Texas and New Mexico, behind Exxon Mobil (XOM.N) and Chevron (CVX.N).
U.S. lawmakers have sought increased scrutiny of multi-billion dollar deals in the oil and gas industry from the FTC.
WHY IT IS IMPORTANT
This is the fifth oil and gas deal since December to get a second request from the FTC. Other deals to receive second notices include the Exxon (XOM.N) - Pioneer (PXD.N), Chevron (CVX.N) - Hess (HES.N) and Occidental (OXY.N) - Crownrock (CROWR.UL).
Earlier this month, Chesapeake Energy (CHK.O) and Southwestern Energy (SWN.N) said the closing date of their proposed $7.4 billion merger had been pushed back to the second half of the year after receiving a second request for information from the FTC.
BY THE NUMBERS
The combined Diamondback-Endeavor company would pump 816,000 barrels of oil and gas per day (boepd), behind the Exxon-Pioneer combination of about 1.3 million boepd and Chevron's 867,000 boepd in the basin.
