On May 5, 2019, Occidental Petroleum made an offer to Anadarko Petroleum as it wants to merge the two companies. The spokesperson of Occidental also stated that the Company is willing to pay back all the shareholders of Anadarko in cash.
Previously, Occidental had made an offer of $50 billion to buy Anadarko. The company is willing to pay 25% through cash and 75% as stocks. One of the spokesperson of Occidental said that the present offer is too lucrative for Anadarko. Through an official letter, the CEO of Occidental stated that the Company has formulated the acquisition proposal by keeping in mind points raised by Anadarko.
Speaking to the press Vicki Hollub said that due to $50 billion offer the Company will not provide Anadarko seats to Board of Directors. On May 5, 2019, Occidental’s spokesperson said that it has finalized a deal to sell African asset of Anadarko Petroleum to a French company. The spokesperson also revealed that the deal was finalized for $8.8 billion. Last week, Warren Buffet had also agreed to fund Occidental so that the company could buy Anadarko Petroleum. In the statement, Mr. Buffet had agreed to offer staggering $10 billion to Occidental Petroleum.
During a press release, Vicki Hollub stated that to get the fund from Berkshire Hathaway, Occidental Petroleum has to provide a balance sheet. Hollub further said that due to a proper balance sheet it would be easy to determine how the company is planning to place its assets.
According to the sources Occidental is set to control the assets of Anadarko in several regions around the globe, including South America, Gulf of Mexico and in the U.S. At present, Occidental is primarily focusing on shale acreage. The shale business of Anadarko Petroleum ranges between west Texas and New Mexico. Apart from Occidental, Chevron had also showcased its interest in buying several assets of Anadarko.