Occidental submits proposal to acquire Anadarko
Published by Will Owen,
Editor
LNG Industry,
Occidental Petroleum Corporation has delivered a letter to the Board of Directors of Anadarko Petroleum Corporation, setting forth the terms of a superior proposal to acquire Anadarko for US$76.00 per share, in which Anadarko shareholders would receive US$38.00 in cash and 0.6094 shares of Occidental common stock for each share of Anadarko common stock. Occidental’s proposal represents a premium of approximately 20% to the value of Anadarko’s pending transaction with Chevron.
Occidental 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 US$57 billion, based on Occidental’s closing price on 23 April 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 realise 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.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/25042019/occidental-submits-proposal-to-acquire-anadarko/
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