Chevron to buy Anadarko for $33 billion in cash; Anadarko’s shares soared 33 %

Chevron is buying Anadarko for $33 billion in cash and stock with crude prices up 40% this year. The offer of $65 per share represents a 39 per cent premium to Anadarko’s Thursday close. Anadarko’s shares soared 33 per cent in light premarket trading, while Chevron shares fell 1.5 per cent.

“The combination of Anadarko’s premier, high-quality assets with our advantaged portfolio strengthens our leading position in the Permian, builds on our deepwater Gulf of Mexico capabilities and will grow our LNG business,” Chevron Chief Executive Officer Michael Wirth said in a statement.

The offer is structured as 75 per cent stock and 25 per cent cash. Chevron will take on $15 billion of Anadarko’s debt. Chevron also said it plans to divest $15 billion to $20 billion of assets between 2020 and 2022. The enterprise value of the deal is $50 billion.

Credit Suisse Securities (USA) LLC is Chevron’s financial adviser, while Paul, Weiss, Rifkind, Wharton & Garrison LLP is its legal adviser. Evercore and Goldman Sachs are financial advisers to Anadarko, while Wachtell, Lipton, Rosen & Katz and Vinson & Elkins LLP are its legal advisers.

BREAKING: Chevron is buying Anadarko for $33 billion in cash and stock with crude prices up 40% this year.

— The Associated Press (@AP) April 12, 2019