Chevron on Friday announced plans to acquire oil as well as gas producer Anadarko Petroleum in a cash as well as stock deal the company valued at $33 billion.
Shares of Anadarko rose nearly 5% from the premarket following the news. Chevron shares were down about 2 percent.
The deal values Anadarko at $65 per share. Based on Chevron’s closing cost of $46.80 on April 11, Anadarko shareholders will receive 0.3869 shares of Chevron as well as $16.25 in cash for each Anadarko share.
“which takes a great company as well as makes which even better,” Chevron’s Chairman as well as CEO Michael Wirth told CNBC’s “Squawk Box” immediately after the news broke. “As our company has strengthened its financial situation over recent years, we’re always looking to make our portfolio even stronger.”
The deal, which is actually subject to shareholder as well as regulatory approval, is actually required to close from the second half of 2019. If approved, Chevron said which plans to boost its annual share buyback program to $5 billion through $4 billion.
Wirth said the deal will allow Chevron to “win in any environment,” playing to the company’s strengths in shale, deep water as well as natural gas.
“which transaction will unlock significant value for shareholders, generating anticipated annual run-rate synergies of approximately $2 billion, as well as will be accretive to free cash flow as well as earnings one year after close,” Wirth said earlier from the company’s Discharge.