A huge $33 billion deal in the oil industry. Chevron Corporation has signed a definitive agreement with Anadarko Petroleum Corporation to buy the remaining shares of the latter. The titles will be purchased ad a price of $65 per share (33 billion dollars in total, in fact), with a 39% premium on the closing price of the stock on April 11th.
The one between the Californian giant and the Texan Anadarko, one of the largest oil and gas companies in the world with a production of 2,5 billion barrels of reserves and an annual sale of 248 million BOE, will be the largest acquisition in the oil sector since 2015, since the $61 billion deal between Royal Dutch Shell and BG Group.
Anadarko shareholders will receive 0,3869 Chevron shares and $16,25 in cash, Chevron said in a statement. The Californian company will issue 200 million shares, pay about 8 billion in cash it will also take on 15 billion of Anadarko's debts bringing the total value of the transaction to approximately 50 billion.
The Anadarko acquisition "will significantly enhance Chevron's lead in its upstream portfolio and further strengthen its leading position in the attractive shale, deepwater and natural gas reservoirs markets." This is the comment of the CEO of Chevron, Michael wirth, according to which "the agreement" will lead the group to grow also in the liquefied natural gas market, "it will generate significant value for shareholders with anticipated synergies of 2 billion per year"
In the pre-market of Wall StreetChevron shares fell more than 3%, while Anadarko stock gained 36,7% to $61,77 per share.
