Anadarko to terminate Chevron deal after 'superior' Occidental Petroleum offer

By EnergyFOXBusiness

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Anadarko Petroleum Corp. intends to terminate a merger agreement with Chevron Corp. after receiving a superior bid from Occidental Petroleum Corp., the most recent shakeup in a rare public bidding war for the oil and gas driller.

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Chevron has until the end of this week to try to top Occidental’s latest offer, which is still $76 per share but includes more cash than the prior bid, which was a 50-50 split between cash and stock.

The Houston-based firm also said France’s Total S.A. would buy Anadarko’s African assets for $8.8 billion if the deal goes through.

TickerSecurityLastChange%Chg
APCANADARKO PETROLEUM CORP.72.77+0.56+0.78%
CVXCHEVRON CORP.124.32+0.66+0.53%
OXYOCCIDENTAL PETROLEUM CORPORATION45.70-0.09-0.20%

Anadarko’s board of directors on Monday said the proposal from Occidental is “superior” to Chevron’s $33 billion bid. Should the San Ramon, California-based company opt not to revise the terms of its deal, or if a new offer is not deemed better, Anadarko would be forced to pay a $1 billion termination fee.

“Anadarko is required to, and will, make its representatives reasonably available to negotiate with Chevron during this period with respect to such proposed revisions or other proposal, if any,” the company said in a statement.

A Chevron spokesperson did not immediately respond to request for comment.

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Assisting Occidental is famed investor Warren Buffett’s Berkshire Hathaway, which provided a $10 billion preferred stock investment earlier this month contingent on the deal closing.

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Occidental’s offer would not require a shareholder vote, given the now 78 percent-22 percent split between cash and stock.