Occidental Petroleum (Oxy) had made an offer to acquire Anadarko Petroleum Corporation for a combined cash and stock value of $57 billion, ahead of Chevron’s acquisition offer made earlier this month that has an enterprise value of $50 billion.
Oxy’s offer entails Anadarko shareholders would receive $38.00 in cash and 0.6094 shares of Oxy common stock for each share of Anadarko common stock. Oxy’s proposal represents a premium of approximately 20 per cent to the value of Anadarko’s pending transaction as of April 23, 2019, Oxy said in a statement.
Oxy said it believes its proposal is superior both financially and strategically for Anadarko’s shareholders, creating a global energy leader with the scale and geographic diversification to drive growth and deliver compelling value and returns to the shareholders of both companies.
The combined company will be uniquely positioned to leverage Occidental’s demonstrated operational and technical expertise, producing greater anticipated synergies than Anadarko’s pending transaction.
The 50-50 cash and stock transaction is valued at $57 billion, based on Occidental’s closing price on April 23, 2019, including the assumption of net debt and book value of non-controlling interest.
“Occidental is a leader in using technological innovation to create value, and we will deploy our expertise to enhance the performance and productivity of Anadarko's assets not only in the Permian, but globally,” said Vicki Hollub, president and chief executive officer of Occidental. “Occidental and Anadarko have a highly complementary asset portfolio, providing us with a unique opportunity to realize significant operating, cost, and capital allocation synergies and achieve near-term cash flow accretion.”
Vicki Hollub continued, “We have been focused on Anadarko for several years because we have long believed that we are ideally positioned to generate compelling value from a combination with them. We look forward to engaging immediately with Anadarko's Board and stakeholders to deliver this superior transaction.”
Anadarko Petroleum Corporation confirmed that it has received the unsolicited proposal from Oxy. It said it would review Oxy's offer and until it comes back with its verdict the company reaffirmed its existing recommendation of the transaction with Chevron.