In a massive deal worth $55 billion, one of the largest mergers & acquisitions (M&A) of recent times has just been officially confirmed.
The $55 billion deal was agreed upon by Occidental Petroleum as it agreed to assume all debts and buy the entire business of Anadarko Petroleum.
Speaking on the completion of the deal, the chief executive officer and president of Occidental, Vicki Hollub said that Occidental shall now march towards its plans of integrating Anadarko’s world-class asset portfolio with Occidental and provide its shareholders and customers with the significant value that this merger brings.
As per reports, the deal was successfully completed on Thursday at a special meeting organized for shareholders of Anadarko. Significantly more than 99percent of Anadarko’s shareholders voted in favor for Occidental to acquire the entire company.
Furthermore, a spokesperson for Oxy said that as the deal has successfully been completed, common stocks of Anadarko has been taken off from trading on the New York Stock Exchange.
As per the agreements of the deal, each and every shareholder of Anadarko will be eligible to receive 0.2934 shares and US$59.00 in cash per share of Occidental’s common stock.
However, as per experts and analysts closely following the matter, this transaction will put Occidental in a notable debt.
Reportedly, the initial bid made by Occidental to acquire Anadarko was 50 percent of the company’s value of US$57 billion being paid in cash and the rest in stocks, however, the bid was declined by Anadarko. After which Occidental came up with an improvised bid of 80 percent of the US$57 billion being paid in cash and the rest in shares which was approved by the board members of Anadarko.
Significantly, Occidental faced some tuff competition on its course to seal one of the largest oil and gas M&A deals for the last decade, as it had to outbid major players like Chevron back in may amongst others.