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    Oxy Completes Anadarko Purchase

Summary

The expanded company eyes annual savings of at least $3.2bn in cost and capital spending.

by: William Powell

Posted in:

Natural Gas & LNG News, Africa, Americas, Liquified Natural Gas (LNG), Corporate, Mergers & Acquisitions, News By Country, United States

Oxy Completes Anadarko Purchase

US-focused independent Occidental (Oxy) has completed its acquisition of compatriot Anadarko in a $55bn deal plus the assumption of Anadarko’s debt, it said August 8.

“With Anadarko’s world-class asset portfolio now officially part of Occidental, we begin our work to integrate our two companies and unlock the significant value of this combination for shareholders,” said Oxy CEO Vicki Hollub. “We expect to deliver at least $3.5bn annually in cost and capital spending synergies and the focus of our board and management team is on execution to achieve the promise of this exciting combination. We look forward to updating the market on our continued progress in the months ahead.”

The closing of the transaction follows approval of the transaction by Anadarko’s shareholders at a meeting held earlier in the day, where over 99% of the shares voted in favour.

Anadarko shareholders are receiving $59.00 in cash and 0.2934 shares of Oxy common stock per share of Anadarko common stock in the transaction. Effective after the end of trading August 8, Anadarko’s common stock will no longer trade on the New York Stock Exchange.

Oxy separately agreed to sell all Anadarko's African assets, including the approved Mozambique LNG project that Anadarko operated, to French Total. The payment allowed Oxy to increase the cash component and the deal does not require Oxy shareholders' approval. Total has not so far issued a statement on the completion of that deal.