Anadarko moves toward deal with Occidental

HOUSTON — Anadarko Petroleum Corp. (NYSE: APC) has determined that the offer to buy the company from Occidental Petroleum Corp. is superior to the offer already accepted from Chevron Corp.

The Anadarko board is now awaiting a response from Chevron.

Occidental (NYSE: OXY) offered to buy Anadarko last month and then sweetened the deal last week. The Oxy deal was at $76 per share, compared with a $61.62 per share offer from Chevron (NYSE: CVX), which the company had originally accepted.

SPONSORED CONTENT

How dispatchable resources enable the clean energy transition

Platte River must prepare for the retirement of 431 megawatts (MW) of dispatchable, coal-fired generation by the end of the decade and address more frequent extreme weather events that can bring dark calms (periods when there is no sun or wind).

Anadarko has significant oil and gas operations in Northern Colorado.

Under the terms of Occidental’s proposal, Occidental would acquire Anadarko for consideration consisting of $59 in cash and 0.2934 of a share of Occidental common stock per share of Anadarko common stock. Occidental has obtained financing for the entire cash portion of the 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.

Anadarko has notified Chevron of its decision and that after complying with its obligations to Chevron under the Chevron merger agreement, that it will terminate the Chevron agreement and enter into a new agreement with Occidental.

The Chevron agreement gives Chevron four business days, ending May 10, to propose revisions to its offer. If Anadarko terminates the Chevron agreement, it will pay Chevron a $1 billion termination fee.