Occidental Petroleum submitted a bid looking to buy US independent oil and gas producer and Mozambique LNG developer, Anadarko Petroleum for $76.00 per share, totaling $57 billion.
This represents a premium of approximately 20 percent compared to the value of Anadarko’s pending transaction as of April 23.
To remind, another US major, Chevron unveiled its plans to acquire Anadarko in a deal valued at $33 billion.
Under the Occidental Petroleum’s proposal, Anadarko shareholders would receive $38.00 in cash and 0.6094 shares of Occidental common stock for each share of Anadarko common stock, Occidental said in its statement.
Occidental believes its proposal is superior both financially and strategically for Anadarko’s shareholders, creating a global energy leader with the scale and geographic diversification to drive growth and deliver compelling value and returns to the shareholders of both companies, the statement reads.
The 50-50 cash and stock transaction is valued at $57 billion, based on Occidental’s closing price on April 23, 2019, including the assumption of net debt and book value of non-controlling interest.
Occidental further noted that the proposed transaction enhances its position as the largest producer in the Permian with 533 thousand Boe/d of production, accelerating its strategy in U.S. onshore.
The combination features a mix of growth assets that are expected to produce a stronger and more competitive business, with over 1.4 million Boe/d of current production.