Chevron walks away from Anadarko Petroleum deal, will collect $1 billion breakup fee

0

Chevron Corp. has announced that, under the terms of its previously announced merger agreement with Anadarko Petroleum Corp., it will not make a counterproposal and will allow the four-day match period to expire.

Accordingly, Chevron says in the statement that it anticipates that Anadarko will terminate the merger agreement.

Chevron’s Chairman and CEO Michael Wirth said: “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.

“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 the termination of the merger agreement, Anadarko will be required to pay Chevron a termination fee of US$1 billion.

In the statement, Chevron claims that it is planning to increase its share repurchase rate by 25% to US$5 billion/yr.

LEAVE A REPLY

Please enter your comment!
Please enter your name here