Chevron to acquire Anadarko for $33bn in stock and cash
Chevron Corp will acquire Anadarko Petroleum Corp for $65 per share, the company said in a statement. Anadarko shareholders will receive 0.3869 Chevron shares and $16.25 in cash for each Anadarko share.
Chevron will issue 200-million shares and pay $8-billion in cash. The company will also assume about $15-billion of net debt.
Chevron will boost its share repurchase rate by $1-billion to $5-billion a year on closing of the deal.
The transaction is expected to achieve run-rate cost synergies of $1-billion before tax and capital spending cuts of $1-billion within a year of closing.
“The combination of Anadarko’s premier, high-quality assets with our advantaged portfolio strengthens our leading position in the Permian, builds on our deep-water Gulf of Mexico capabilities and will grow our liquefied natural gas business. It creates attractive growth opportunities in areas that play to Chevron’s operational strengths and underscores our commitment to short-cycle, higher-return investments,” Chevron chairperson and CEO Michael Wirth says.
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