By Fred Akanni, Editor in Chief
Chevron Corporation will not take over Anadarko, after all.
The American super major announced yesterday that, under the terms of its previously announced Merger Agreement with the company, it will not make a counter proposal and will allow the four-day match period to expire.
“Accordingly, Chevron anticipates that Anadarko will terminate the Merger Agreement”, the company says in a release.
.“Winning in any environment doesn’t mean winning at any cost. Cost and capital discipline always matter, and we will not dilute our returnsor erode value for our shareholders for the sake of doing a deal,” says Michael Wirth, Chevron’s Chairman and CEO.
“Our advantaged portfolio is driving robust production and cash flow growth, higher investment returns and lower execution risk. We are well positioned to deliver superior value creation for our shareholders,” Wirth says.
Upon termination of the Merger Agreement, Anadarko will be required to pay Chevron a termination fee of $1Billion.