04/15/2019 | Press release | Distributed by Public on 04/15/2019 09:52
Integrated energy global giant Chevron Corporation (NYSE: CVS) said Friday it reached an agreement to acquire Anadarko Petroleum Corporation (NYSE: APC), one of the world's largest independent exploration and production companies.
As part of the merger agreement, Chevron will pay Anadarko shareholders $16.25 in cash plus 0.3869 Chevron shares for each Anadarko share held. The deal values Anadarko's stock at $65 per share and represents a premium of more than 35 percent from Thursday's closing price.
Anadarko's stock traded at $61.90 ahead of Friday's market open, up 32 percent. At the same time, Chevron's stock was lower by more than 4 percent.
Why It's Important
Chevron's acquisition of Anadarko is intended to enhance its Upstream portfolio and further improve on its already leading positions in large, attractive shale, deepwater and natural gas resource basins, the companies said. The deal is expected to translate to:
The deal has been approved by both companies' board of directors and remains subject to approval by Anadarko shareholders and customary closing conditions. Once the transaction closes the combined entity will be run by Chevron CEO and Chairman Michael Wirth.
'Occidental is now considering its options. The Chevron-Anadarko break-up fee is said to be 3% of the deal price,' sources told CNBC.