Chevron abandons plans to acquire Anadarko

SAN RAMON, Calif. — Chevron Corp. (NYSE: CVX) has decided to accept the $1 billion payment from Anadarko Petroleum Corp. (NYSE: APC) and abandon its plans to acquire the company that has major operations in Northern Colorado.

Chevron will not counter the proposal offered from Occidental Petroleum Corp. (NYSE: OXY), a proposal, as BizWest reported, that exceeded what Chevron had earlier offered for Anadarko.

“Winning in any environment doesn’t mean winning at any cost. Cost and capital discipline always matter, and we will not dilute our returns or erode value for our shareholders for the sake of doing a deal,” Michael Wirth, Chevron’s chairman and CEO, said in a written statement when the company made its decision. “Our advantaged portfolio is driving robust production and cash flow growth, higher investment returns and lower execution risk. We are well positioned to deliver superior value creation for our shareholders.”

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Upon termination of the merger agreement, Anadarko will be required to pay Chevron a termination fee of $1 billion. Consistent with Chevron’s commitment to superior shareholder returns, the company plans to increase its share repurchase rate by 25 percent to $5 billion per year, the company said.