Houston Chronicle by Jordan Blum Aug. 8, 2019
2of3The towers and campus of Anadarko Tuesday,Photo: Michael Wyke / Contributor
3of3Occidental Petroleum CEO Vicki Hollub Occidental Petroleum CEO Vicki Hollub has contended that Oxy’s execution and efficiency, especially in the Permian, will more than pay for the Anadarko deal in the years ahead.Photo: Gary Fountain, Contributor / For the Chronicle/Gary Fountain
Occidental Petroleum completed its $38 billion acquisition of Anadarko Petroleum on Thursday, combining two of the biggest oil producers in the Houston area and launching Oxy on a quest to integrate the companies, cut costs and make difficult decisions on the futures of employees and assets.
The megadeal, the biggest energy merger in three years, was finalized shortly after 99 percent of the voting Anadarko shares approved the deal. The merger adds Anadarko’s nearly 5,000-person workforce to Oxy’s team of 11,000 employees and creates a combined company that is the largest player in West Texas’ booming Permian Basin and one of the top producers in the Gulf of Mexico.
“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 Chief Executive Vicki Hollub.
Oxy won the right to acquire Anadarko by outbidding the much larger Chevron. Anadarko originally agreed to be bought by Chevron, but backed out when Oxy sweetened its offer. Chevron received a $1 billion termination fee.
Occidental Petroleum has little time for celebration. It must immediately turn its focus to debt reduction and asset sales while fending off a proxy war launched by activist investor Carl Icahn — who contends Oxy overpaid for Anadarko and wants to replace nearly half of the board of directors.
More:
https://www.houstonchronicle.com/business/energy/article/Oxy-completes-38B-acquisition-of-Anadarko-to-14291751.php
