Summary
Occidental Petroleum Corporation (OXY) filed an 8-K on August 5, 2019, detailing a definitive Purchase and Sale Agreement with Total S.A. for the divestiture of Anadarko Petroleum Corporation's (Anadarko) assets in Algeria, Ghana, Mozambique, and South Africa. This agreement, valued at $8.8 billion cash, supersedes a prior Memorandum of Understanding and is a critical component of Occidental's larger strategy to acquire Anadarko. The sale is contingent upon the successful completion of Occidental's merger with Anadarko, regulatory approvals, and other customary closing conditions. The transaction is structured with an initial closing in either Algeria or Mozambique, followed by subsequent closings in other jurisdictions as approvals are obtained. This divestiture is crucial for Occidental to manage the significant debt incurred in its bid for Anadarko and to streamline its asset portfolio.
Key Highlights
- 1Occidental has entered into a definitive agreement to sell Anadarko's African assets (Algeria, Ghana, Mozambique, South Africa) to Total S.A. for $8.8 billion cash.
- 2This agreement supersedes the previously announced Memorandum of Understanding (MOU) between Occidental and Total.
- 3The transaction is conditional upon the successful completion of Occidental's merger with Anadarko.
- 4Closing of the sale is subject to customary closing conditions, including obtaining necessary governmental approvals.
- 5The transaction will involve an initial closing in one jurisdiction, with subsequent closings in others as approvals are secured.
- 6The Purchase and Sale Agreement includes customary representations, warranties, covenants, and termination rights for both parties.
- 7A key termination condition is the absence of consummation of any portion of the Transactions by December 1, 2020.