Wirth doing

12 Apr 2019 By George Hay Follow @gfhay

The $239 bln U.S. oil giant is buying its domestic peer in a cash-and-shares deal. Hefty synergies more than cover the offered premium. As rivals try to become greener, Chevron is sticking to what it knows by buying big in global oil’s key growth area.

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Chevron said on April 12 it had offered to buy Anadarko Petroleum for $33 billion, or $65 per share.

Based on Chevron’s closing price on April 11, Anadarko shareholders will receive just under 0.4 shares of Chevron and $16.25 in cash for each Anadarko share, giving them around 9 percent of the merged company. The total value of the transaction is $50 billion including debt.

Chevron said that the deal would enable it to save an annual $1 billion of costs and reduce capital expenditure by $1 billion per year.

Chevron plans to sell $15 billion to $20 billion of assets between 2020 and 2022 in order to cut debt and return cash to shareholders, including raising the pace at which it is buying back more shares.

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