Chevron Backs Its Anadarko Deal

Chevron Backs Its Anadarko Deal
Chevron's signed agreement with Anadarko provides the best value and the most certainty to Anadarko's shareholders, according to Chevron.

Chevron’s signed agreement with Anadarko provides the best value and the most certainty to Anadarko’s shareholders.

That’s what Chevron believes, a company spokesperson said in an emailed statement sent to Rigzone late Wednesday.

Chevron revealed on April 12 that it had entered into an agreement to buy Anadarko. Following this agreement, Occidental announced on April 24 that it had made a proposal to acquire Anadarko.

In a company statement released on its website on April 24, Occidental said it believed its proposal is “superior both financially and strategically for Anadarko’s shareholders”.

Anadarko announced on April 29 that it intends to resume negotiations with Occidental in response to its proposal to acquire the company. On April 30, Occidental revealed that Berkshire Hathaway Inc has committed to invest a total of $10 billion in Occidental if the company enters into and completes its proposed acquisition of Anadarko.

In a research note sent to Rigzone on Monday, Jefferies representatives put the chances of Chevron raising its offer for Anadarko at 75 percent.

“If they do raise it will be into the low $70's per share. Taking the $1b break fee and walking away is an acceptable option,” the representatives said in the research note.

Chevron’s deal to acquire Anadarko would shake up the U.S. upstream sector, creating a company that rivals ExxonMobil domestically, according to GlobalData. Occidental’s proposed Anadarko deal would put the company alongside ConocoPhillips in a peer group of two as a “super-independent”, according to Zoe Sutherland, a corporate analyst at Wood Mackenzie.


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