NEW YORK, May 9 — Chevron Corp abandoned its pursuit of Anadarko Petroleum Corp today, outmanoeuvred by a higher rival bid of US$38 billion (RM159.8 billion) that included more than three times as much cash.
The decision leaves Occidental Petroleum Corp as the likely victor in a contest that again proved the allure of US shale.
Occidental has said it plans to shed most of Anadarko’s non-shale properties in a deal that cements its position in the Permian Basin, the top US shale field.
Chevron, whose shares had gained 25 per cent in the two years prior to its Anadarko offer, declined to revise its offer after Occidental boosted the cash portion of its US$76-a-share bid.
The no. 2 US oil producer stands to receive a US$1 billion breakup fee.
“Winning in any environment doesn’t mean winning at any cost,” said Chevron Chief Executive Michael Wirth.
“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.”
Shares of Occidental fell 4.2 per cent to US$57.66 before the bell, Anadarko shares were down 1.8 per cent at US$74.51. Chevron shares were up 3.7 per cent at US$121.84. — Reuters