$ 33 Billion Deal for Anadarko Raises Energy Mergers Fever by Investing.com

Investing.com – Mergers fever hits the energy sector on Friday Chevron The $ 33 billion deal on the purchase of Anadarko Petroleum has sparked speculation about new ties in the industry.

Chevron (NYSE 🙂 has agreed to pay $ 65 per Anadarko share (NYSE 🙂 in equities and cash, pushing up Anadarko shares by almost 33%. The merger will create an oil power plant worth approximately $ 50 billion.

Chevron said the agreement would strengthen its portfolio upstream and strengthen its positions in major shale, deep-sea and natural gas reservoirs.

The merger, expected to be finalized in the second half of the year, will provide $ 1 billion in operating cost synergies and $ 1 billion in capital equipment reductions by the end of the year. year from closing, according to the two companies.

Shareholders are also expected to receive considerable wealth as Chevron plans to increase its share buyback program to $ 5 billion, up from $ 4 billion after the merger.

Chevron was not the only pretender to have eyes on Anadarko.

Occidental Petroleum (NYSE 🙂 had offered $ 70 a share in cash and shares, CNBC reported, citing unnamed sources. Occidental can now turn to other major players in the Permian shale.

Pioneer natural resources (NYSE :), Persil Energy (NYSE 🙂 and Concho Resources (NYSE :), major Permian shale companies, have rallied to the announcement of this deal.