Occidental bids $38 billion for Anadarko in plan to beat Chevron
Occidental Petroleum Corp. has started a bidding war in the Permian, offering $38 billion for Anadarko Petroleum Corp. in an attempt to break up a proposed takeover by Chevron Corp.
Occidental said Wednesday it's offering $76 per share in cash and stock, compared with Chevron's April 12 agreement to buy The Woodlands, Texas-based Anadarko for about $33 billion, or $65 a share.
The acquisition would be the largest ever proposed by Occidental, which has a market value of $46.6 billion, and would be the biggest purchase of an oil producer in at least four years. It would require Anadarko to pay a $1 billion breakup fee to Chevron. Occidental's offer would also pull together two second-tier oil and natural gas producers, as opposed to Chevron's bid to create another "ultramajor" to rival Exxon Mobil Corp.
"This highlights the potential value of the Permian," said Rob Thummel, managing director at Tortoise Capital Advisors, which manages energy-related assets. "Chevron will fight because acreage in Permian fits so well with its existing acreage, increasing the potential for better-than-expected operational synergies."
Read more: https://www.mrt.com/business/oil/article/Occidental-bids-38-billion-for-Anadarko-in-plan-13791313.php
