Summary
Chevron Corporation has officially terminated its previously announced agreement to acquire Anadarko Petroleum Corporation. The company announced on May 9, 2019, that it would not make a counterproposal to acquire Anadarko's outstanding shares. Following this decision, Anadarko delivered a termination notice to Chevron, and the merger agreement was subsequently terminated on May 9, 2019. As part of the termination, Anadarko will pay Chevron a breakup fee of $1 billion in cash. This development signifies a significant shift in Chevron's M&A strategy and potentially opens the door for other suitors for Anadarko. Investors should monitor Chevron's future capital allocation and strategic priorities in light of this terminated transaction.
Key Highlights
- 1Chevron Corporation has terminated its Agreement and Plan of Merger with Anadarko Petroleum Corporation.
- 2Chevron decided not to make a counterproposal to acquire Anadarko's common stock.
- 3Anadarko Petroleum Corporation terminated the Merger Agreement on May 9, 2019.
- 4Anadarko will pay Chevron a termination fee of $1 billion in cash.
- 5The termination fee of $1 billion is a significant financial consideration for Chevron.
- 6This event indicates a change in Chevron's pursuit of Anadarko as an acquisition target.