Anadarko Petroleum Corporation has entered into a definitive merger agreement with Occidental Petroleum Corporation under which Occidental will acquire all of the outstanding shares of Anadarko for $57 billion (with debt).
Anadarko also announced that prior to entering into the merger agreement with Occidental, the company terminated its previously announced merger agreement with Chevron Corporation. In accordance with the terms of that agreement, Anadarko has paid a termination fee of $1 billion to Chevron.
On April 12 Chevron, an oil major five times Occidental’s size, announced a $33 billion deal to buy Anadarko (and assume its $15 billion in net debt). On April 24, Occidental made a counteroffer of $57 billion (with debt), then on May 5 sweetened its terms. On May 6 Anadarko’s board backed it as “superior” to that of Chevron, which had until May 10 to counteroffer. It is already the energy industry’s biggest bidding war in decades.
Al Walker, Chairman and Chief Executive Officer of Anadarko, commented: “We are pleased to have reached an agreement with Occidental that delivers significant, near-term value to our shareholders. Anadarko’s employees have strategically assembled a premier portfolio of world-class assets, and this transaction would not have been possible without our board’s leadership over the past several months. We are proud of the substantial premium we have delivered to our shareholders and look forward to working with Occidental to ensure a smooth transition.”
The transaction is expected to close in the second half of 2019, subject to approval by Anadarko shareholders, regulatory approvals and other customary closing conditions. Occidental has obtained committed financing for the entire cash portion of the aggregate transaction, and completion of the transaction will not require or be conditioned upon the receipt of any vote or other approval by Occidental’s stockholders.
For more information visit www.anadarko.com