Anadarko expected to terminate Chevron merger agreement
Chevron Corp. said it will not make a counterproposal to Occidental Petroleum’s Corp. revised bid to acquire Anadarko Petroleum Corp.
Chevron said it anticipates that Anadarko will terminate the merger agreement.
“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. The company said it plans to increase its share repurchase rate by 25% to $5 billion per year.