Chevron Won't Counterbid for Anadarko--Update
09 Mayo 2019 - 08:27AM
Noticias Dow Jones
By Micah Maidenberg
Chevron Corp. ended its pursuit of Anadarko Petroleum Corp.,
saying it won't increase its $33 billion offer to buy the shale
driller and ceding the takeover target to Occidental Petroleum
Corp.
The concession likely ends the fight between Chevron and
Occidental to control more of the Permian Basin, the chief engine
of the U.S. shale boom.
Chevron said Thursday that it would instead take the $1 billion
termination fee it is due from Anadarko and increase its share
repurchase rate by 25% to $5 billion a year.
"Winning in any environment doesn't mean winning at any cost,"
said Michael Wirth, Chevron's chairman and chief executive.
Anadarko earlier this week said Occidental's $38 billion bid was
superior to its deal with Chevron, which was given four business
days to make another offer.
Chevron said it will allow the match period to expire, adding
that it expects Anadarko will terminate the merger agreement.
Production from Permian Basin, which spans more than 75,000
square miles of West Texas and New Mexico, has more than doubled in
recent years and makes up about one-third of total U.S. crude
output, according to the Energy Information Administration.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
May 09, 2019 09:12 ET (13:12 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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