Chevron Backs Its Anadarko Deal
Chevron’s signed
agreement with Anadarko provides the best value and the most certainty to
Anadarko’s shareholders.
That’s what Chevron
believes, a company spokesperson said in an emailed statement sent to Rigzone
late Wednesday.
Chevron revealed on
April 12 that it had entered into an agreement to buy Anadarko.
Following this agreement, Occidental announced on April 24 that it had made a proposal to acquire
Anadarko.
In a company
statement released on its website on April 24, Occidental said it believed its
proposal is “superior both financially and strategically for
Anadarko’s shareholders”.
Anadarko announced
on April 29 that it intends to resume negotiations with
Occidental in
response to its proposal to acquire the company. On April 30, Occidental
revealed that Berkshire Hathaway Inc has committed to invest a total of $10
billion in Occidental if
the company enters into and completes its proposed acquisition of Anadarko.
In a research note
sent to Rigzone on Monday, Jefferies representatives put the chances of Chevron raising its offer for
Anadarko at 75 percent.
“If they do raise it
will be into the low $70's per share. Taking the $1b break fee and walking away
is an acceptable option,” the representatives said in the research note.
Chevron’s deal to acquire Anadarko would shake up the U.S. upstream sector, creating a company that rivals ExxonMobil domestically, according to GlobalData. Occidental’s proposed Anadarko deal would put the company alongside ConocoPhillips in a peer group of two as a “super-independent”, according to Zoe Sutherland, a corporate analyst at Wood Mackenzie.