Diamondback Energy, a major player in the shale oil industry, has announced its acquisition of certain units of Double Eagle Energy. The deal, valued at approximately $4.08 billion, will be settled through a combination of cash and stock.

Diamondback Energy's buyout of Double Eagle could signal the winding down of the rapid consolidation of the Permian Basin over the last half decade.

Diamondback Energy Inc. is closing in on a deal to acquire closely held West Texas oil producer Double Eagle in a bid to further its dominance in the world’s biggest shale patch, according to people familiar with the matter.