Chevron Abandons its Anadarko Bid

Chevron Corp abandoned its takeover bid for Anadarko Petroleum Corp on Thursday, outmaneuvered by Occidental Petroleum Corp’s higher, $38 billion offer that included more than three times as much cash.

With a financing assist from billionaire investor Warren Buffett, Occidental, one-quarter Chevron’s size, is the likely victor in a contest that again proved the allure of U.S. shale.

Occidental has said it plans to shed most of Anadarko’s non-shale properties in a deal that would cement its position in the Permian Basin of West Texas and New Mexico, the top U.S. shale field.

Chevron declined to revise its offer after Occidental boosted the cash portion of its $76 per share bid and Anadarko’s board deemed it a superior offer. Chevron, the No. 2 U.S. oil producer, stands to receive a $1 billion breakup fee.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza