Chevron loses out of Anadarko acquisition


Global oil giant, Chevron Corporation has lost out in the bid to acquire Anadarko Petroleum Corporation.

Chevron said in a statement that it will not make a counterproposal and will allow the four-day match period to expire.

Chevron said it anticipates that Anadarko will terminate the merger deal.

“Winning in any environment doesn’t mean winning at any cost. Cost and capital discipline always matter, and we will not dilute our returns or erode value for our shareholders for the sake of doing a deal,” said Chevron’s Chairman and CEO Michael Wirth. “Our advantaged portfolio is driving robust production and cash flow growth, higher investment returns and lower execution risk. We are well positioned to deliver superior value creation for our shareholders.”

“Upon termination of the Merger Agreement, Anadarko will be required to pay Chevron a termination fee of $1 billion. Consistent with Chevron’s commitment to superior shareholder returns, the company plans to increase its share repurchase rate by 25 percent to $5 billion per year.”

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