Oil giant Chevron buys a major company in the oil and gas exploration and drilling sector Anadarko Petroleum for $33 billion. Chevron pays a combination of cash and shares. The acquisition valued Anadarko Petroleum at $65 for one share. Chevron’s offer is a 37% premium compared to yesterday’s price at closing market.
The transaction will expand the activities of the second largest US oil company into shale oil and gas extraction, offshore drilling and liquefied natural gas exports.
Chevron will go from being the fourth biggest international oil major by production to the second largest. Chevron is now one of the UltraMajors.
Anadarko Petroleum was also interested by Occidental Petroleum, who was willing to pay $70 a share and is currently researching his options.
Anadarko’s share price rose 33.6%. Chevron shares fell 4.7% over yesterday’s $ 125.99 price.
Anadarko shareholders will receive 0.3869 Chevron shares and $16.25 cash for each Anadarko share. Chevron will assume $15 billion of Anadarko’s debt.
Because Chevron CEO Michael Wirth can’t imagine unimaginable, he says a $65 per share is fair price. Wirth, who took office in February 2018, expects the acquisition to allow Chevron to “win in any environment”. He said the acquisition would save more than $ 1 billion in synergies.
Pictures: Anadarko Petroleum headquarters