The discount retailer Costco announced Wednesday that it plans to buy the production and marketing assets of the world’s largest oil company, ConocoPhillips, for $3,2 billion in cash.
The deal was first reported by Reuters.
The transaction will give the company access to nearly $4 billion in financing.
Costco said the deal will close in 2020.
The oil-producing company is in the midst of a transition to a new model.
The company, which has long maintained it does not sell petroleum products, is looking to cut costs and trim expenses to get back on its feet.
Costco also said that it will sell its petrochemical assets to a private equity group for $1.1 billion.
Costco’s new investment comes as it continues to face pressure from environmental groups and some state governments to cut back on oil and gas production and increase production of natural gas.