U.S. oil giant Chevron to buy Anadarko in 33-bln-USD cash-and-stock deal

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NEW YORK, April 12 (Xinhua) — U.S. oil giant Chevron Corporation on Friday said it will buy Anadarko Petroleum Corporation in a mega deal to bolster its position in shale and the liquid natural gas (LNG) market.

Chevron has entered into a definitive agreement with Anadarko to acquire all of the outstanding shares of Anadarko in a stock and cash transaction valued at 33 billion U.S. dollars, or 65 dollars per share, the company said in a statement.

The acquisition of Anadarko will significantly enhance Chevron’s portfolio and further strengthen its leading positions in large, attractive shale, deepwater and natural gas resource basins, said the statement.

Based on Chevron’s closing price on Thursday, and under the terms of the agreement, Anadarko shareholders will receive 0.3869 shares of Chevron and 16.25 dollars in cash for each Anadarko share. The total enterprise value of the transaction is 50 billion dollars.

“The combination of Anadarko’s premier, high-quality assets with our advantaged portfolio strengthens our leading position in the Permian, builds on our deepwater Gulf of Mexico capabilities and will grow our LNG business,” Chevron’s Chairman and CEO Michael Wirth said in the statement.

For his part, Anadarko Chairman and CEO Al Walker said the strategic combination “will form a stronger and better company with world-class assets, people and opportunities.”

The transaction has been approved by the Boards of Directors of both companies and is expected to close in the second half of the year, according to the statement. The acquisition is subject to Anadarko shareholder approval. It is also subject to regulatory approvals and other customary closing conditions.

Based in San Ramon, the U.S. state of California, Chevron is one of the world’s leading integrated energy companies. Through its subsidiaries that conduct business worldwide, the company is involved in virtually every facet of the energy industry.

Texas-based Anadarko is mainly focused on exploration and production of crude oil and natural gas.

Shares of Chevron Corporation dropped about 5 percent, shortly after Friday’s opening, while Anadarko stock surged more than 32 percent.