Anadarko Petroleum Corp. has announced that it has entered into a definitive merger agreement with Occidental Petroleum Corporation under which Occidental will acquire all of the outstanding shares of Anadarko for consideration consisting of $59 in cash and 0.2934 of a share of Occidental common stock per share of Anadarko common stock.
Anadarko also announced that prior to entering into the merger agreement with Occidental, the company terminated its previously announced merger agreement with Chevron Corp. In accordance with the terms of that agreement, Anadarko has paid a termination fee of $1 billion to Chevron.
“We are pleased to have reached an agreement with Occidental that delivers significant, near-term value to our shareholders,” said Al Walker, chairman and chief executive officer of Anadarko. “Anadarko’s employees have strategically assembled a premier portfolio of world-class assets, and this transaction would not have been possible without our board’s leadership over the past several months. We are proud of the substantial premium we have delivered to our shareholders and look forward to working with Occidental to ensure a smooth transition.”
The transaction is expected to close in the second half of 2019, subject to approval by Anadarko shareholders, regulatory approvals and other customary closing conditions.