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Anadarko board says new Oxy offer 'superior'

May 07, 2019
2 min read
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Anadarko Petroleum announced that its board of directors had found the revised acquisition proposal from Occidental Petroleum (Oxy) to be a "superior proposal" to the prior Chevron offer.

The latest twist in the Anadarko takeover means Chevron now has four days to counter Occidental’s latest bid for Anadarko.

Chevron initially reached an agreement last month to buy Anadarko for US$33 billion, or $65 a share. Shortly afterwards, Occidental put in a rival offer of $38 billion, or $76 a share. Then Oxy on Sunday sweetened its bid by offering to pay mostly cash for Anadarko, after earlier making the offer as a 50-50 cash-and-stock deal in comparison to Chevron's structured deal as 75 per cent stock and 25 per cent cash.

In a press statement Anadarko's board said it intends to end the deal with Chevron and enter into a definitive agreement to sell its business to Anadarko.

"Anadarko has notified Chevron that Anadarko's board of directors has unanimously determined that the Revised Occidental Proposal constitutes a "Superior Proposal" and after complying with its obligations to Chevron under the Chevron Merger Agreement, Anadarko intends to terminate the Chevron Merger Agreement in order to enter into a definitive merger agreement with Occidental in connection with the Revised Occidental Proposal."

If Chevron does not make a counter offer, or if its revised proposal is rejected, Anadarko must pay Chevron a $1 billion breakup fee.

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