Occidental acquisition of Anadarko : US oil and gas firms sign $57bn deal

Occidental acquisition of Anadarko : US-based Occidental Petroleum has entered into a $57 billion merger agreement to acquire all of the outstanding shares of Anadarko Petroleum after the latter terminated its previously announced merger agreement with Chevron, as per the latest oil and gas industry news.

Occidental acquisition of Anadarko terms

The latest agreement includes a cash consideration of $59 and 0.2934 of a share of Occidental common stock per share of Anadarko common stock, which includes the assumption of the latter’s debt.

Occidental Petroleum Corporation deals in hydrocarbon exploration in the US, the Middle East, and Colombia as well as petrochemical manufacturing in the US, Canada, and Chile.

On the other hand, Anadarko Petroleum, which is headquartered in The Woodlands, Texas, engages in hydrocarbon exploration, apart from petroleum and natural gas gathering, processing, treating, and transportation.

Vicki Hollub – President and CEO of Occidental, commenting on Occidental acquisition of Anadarko, said: “This exciting transaction will create a global energy leader with a world-class portfolio, proven operational capabilities and industry leading free cash flow metrics,” said Vicki Hollub, President and Chief Executive Officer of Occidental.

“This transaction further establishes Occidental as a premier operator in prolific global oil and gas regions with the ability to deliver production growth of 5% through investment in projects with industry-leading returns. With greater scale, an unwavering focus on driving profitable growth, and our commitment to growing our dividend, we are creating a unique platform to drive meaningful shareholder value.”

Occidental acquisition of Anadarko. Photo courtesy of Philcomanforterie/Wikipedia.org.

Scheduled to close in the second half of 2019, Occidental acquisition of Anadarko is subject to approval by Anadarko shareholders, regulatory approvals and other customary closing conditions.

Occidental does not require the vote or approval of its stockholders as the company obtained committed financing for the entire cash portion of the aggregate transaction.

Goldman Sachs & Co. LLC, Evercore, and Jefferies LLC have acted as financial advisors to Anadarko while Wachtell, Lipton, Rosen & Katz has acted as legal advisor.

Last month, Chevron signed an agreement to acquire Anadarko in a $50 billion deal including the assumption of the latter’s debt. However, the agreement was scrapped following a superior offer from Occidental, according to the latest oil and gas news industry updates.

Anadarko has paid a termination fee of $1 billion to Chevron as per the terms of their previously announced merger agreement.

Commenting on Occidental acquisition of Anadarko, Al Walker – Anadarko Chairman and CEO said: “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.”

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