Occidental Petroleum has proposed to acquire oil and gas producer Anadarko Petroleum in a 50-50 cash and stock transaction valued at $57bn.
Under Occidental’s offer, Anadarko shareholders would receive $38 in cash and 0.6094 shares of Occidental common stock for each Anadarko share. The offer includes the assumption of net debt and book value of non-controlling interest.
According to Occidental, their $76 per share offer is around 20% premium compared to the Chevron’s $65 per share.
Earlier in April, Chevron entered into definitive agreement to acquire all the outstanding shares of Anadarko in a stock and cash transaction valued at $33bn. The deal is subject to shareholder and regulatory approvals.
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Under the agreement, Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each share.
Occidental president and CEO Vicki Hollub said: “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.
“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.”
If the deal advances, the combination of Occidental and Anadarko Petroleum would create a more than $100bn global energy company with around 1.4 Million barrels of oil equivalent per day (Boe/d) of production. It would also make Occidental the largest producer in the Permian basin with 533 thousand Boe/d of production.
Confirming Occidental’s offer, Anadarko said that it will respond after carefully reviewing the proposal.