• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 9 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 5 hours Australian Voters Reject 'Climate Change' Politicians
  • 4 hours Global Warming Making The Rich Richer
  • 17 mins The Consequences: Full-Blown Trade War Will Push World Towards Recession
  • 12 hours Australia Election Summary: "This was the Climate Change Cult Election, and the Climate Change Cult Lost"
  • 3 hours Greenpeace Blocks BP HQ
  • 5 hours Shale to be profitable in 2019!!!
  • 16 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 6 hours Shell ‘to have commercial wind farms’ by early 2020s
  • 1 hour Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 16 hours Some Good News on Climate Change Maybe
  • 12 hours DUG Rockies: Plenty Of Promise, Despite The Politics
  • 1 hour 6 Ways to Fight Climate Change
  • 4 hours California Threatens Ban on ICE Cars
  • 12 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Trending Discussions

Chevron And Occidental Start Bidding War For Anadarko

Occidental Petroleum said on Wednesday that it is proposing to buy Anadarko at a higher price than the one Anadarko had accepted from Chevron, potentially opening a bidding war for one of the U.S. companies with the strongest positions in the Permian.

Occidental Petroleum sent a letter to Anadarko’s board of directors today, offering “a superior proposal” to buy Anadarko for $76.00 per share, in which Anadarko shareholders would receive $38.00 in cash and 0.6094 shares of Occidental common stock for each share of Anadarko common stock.

The $76.00 per share cash-and-stock proposal from Occidental represents a premium of around 20 percent to the current value of the transaction with Chevron that Anadarko had accepted, Occidental said in a statement. 

“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,” according to Occidental.

Less than two weeks ago, Chevron said that it had entered into a definitive agreement to buy Anadarko in a stock and cash transaction valued at US$33 billion that will boost Chevron’s position in the Permian, the Gulf of Mexico, and in liquefied natural gas (LNG). The acquisition consideration is structured as 75 percent stock and 25 percent cash, providing an overall value of US$65 per share based on the closing price of Chevron stock on April 11, 2019. Related: Trump’s Hardline On Iran Catches Markets Off-Guard

The total enterprise value of the Chevron-Anadarko transaction is US$50 billion, including the assumption of net debt and book value of non-controlling interest, while Occidental’s offer values a potential transaction at US$57 billion.

In the letter to Anadarko’s board today, Occidental said that it had made three acquisition proposals to Anadarko since late March and it was “surprised and disappointed” that the board had not engaged with Occidental on them.

“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,” Occidental’s president and CEO Vicki Hollub said in a statement.

Following Occidental’s bid, Anadarko shares shot up 11 percent in pre-market trade on Wednesday.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Tripp Mills on April 24 2019 said:
    Interesting and I guess let the bidding war begin! Best of luck and look forward to seeing the clean, green, renewable, and support for OPEC cuts so that we all do the right thing to support the energy industry, our allies, the future, etc. All the best, Tripp

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News