Anadarko Petroleum Corp. will resume merger talks with Occidental Petroleum Corp. following the firm’s $38 billion bid, it announced on Monday, weeks after the company agreed to a separate $33 billion takeover deal from Chevron Corp.
|APC||ANADARKO PETROLEUM CORP.||72.64||-0.16||-0.22%|
|OXY||OCCIDENTAL PETROLEUM CORPORATION||59.93||-1.38||-2.25%|
In a statement, Anadarko said it restarted discussions with Occidental because the offer could be defined as a “superior proposal” under the agreement with Chevron.
“The Occidental proposal reflects significant improvement with respect to indicative value, terms and conditions, and closing certainty as compared to any previous proposal Occidental made to Anadarko,” the company said. “There can be no assurance that negotiations with Occidental will result in a transaction that is superior to the pending transaction with Chevron.”
Despite the decision to reengage with Occidental, the Chevron agreement currently remains in effect and the Anadarko board still backs the offer from the San Ramon, California-based company.
Should the Chevron deal fall through, Anadarko would be required to pay a $1 billion breakup fine.