Permian pure-player Concho has increased its Midland Basin footprint by almost 35%, with the US$1.625 billion acquisition of Reliance's assets. The assets include 40,000 net acres and 10,000 boe/d of production (67% oil). We value the deal slightly higher than the consideration, when including corporate effects. The acreage is close to Concho's existing Midland Basin assets, allowing for operational synergies including surface facilities and development corridors. This is the biggest deal of the year in the Permian and consolidates the region’s position as the leading destination for tight oil focused M&A. Year-to-date disclosed spend in the Permian now stands at US$8.4 billion (15% of 2016 global M&A transaction value).