Chevron abandons bid to buy Anadarko for US $ 33 billion and frees the way for Occidental

On Thursday, Chevron abandoned its bid to buy Anadarko Petroleum, because its offer was surpassed by a US $38 billion proposal from Occidental Petroleum Corp that included triple the cash.

The decision leaves Occidental as a possible victor in a race that once again demonstrated the attractiveness of the American shale.

Occidental has said it plans to dispose of most of Anadarko Corp’s non-shale properties in an agreement that consolidates its position in the Permian Basin, the main shale field in the United States.

Chevron Corp, whose shares had gained 25% in the two years prior to its bid for Anadarko, declined to revise its proposal after Occidental increased its cash portion of US $76 per share.

The second largest oil producer in the United States seeks to receive US $1 billion in compensation for broking its negotiation.

“Winning in any environment does not mean winning at any cost,” said Chevron CEO Michael Wirth. “We will not dilute our returns or erode the value for our shareholders by making a deal.”

Occidental shares fell 4.2% to US $ 57.66 before the start of the Wall Street, while Anadarko’s shares fell 1.8% to US $ 74.51. Chevron’s shares rose 3.7% to US $121.84.

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