ConocoPhillips (NYSE:COP, ETR:YCP) is in advanced talks to acquire Marathon Oil Corp (NYSE:MRO) in an all-stock transaction valued at over $15 billion, according to the Financial Times.
The takeover could be announced soon, though there is still a chance it could fall apart or face a rival bid, the newspaper added.
This acquisition is part of a wave of mega-deals reshaping the US energy sector, as large oil companies seek to consolidate shale resources.
Recent major M&A activity includes ExxonMobil and Chevron's acquisitions worth $60 billion and $53 billion, respectively.
ConocoPhillips (NYSE:COP, ETR:YCP), with a market cap of $139 billion, has been competing with Devon Energy to acquire Marathon. Marathon's shares rose 6% in pre-market trading on Wednesday.
If successful, this would be Conoco's largest acquisition since buying Concho Resources for $10 billion in 2020. Conoco CEO Ryan Lance has emphasized the need for industry consolidation to achieve greater scale and diversity.