UPDATED May 1, 12:22 p.m.
An April 30 press release from Occidental Petroleum Company states Berkshire Hathaway, Inc. has committed to invest $10 billion into Occidental’s proposed acquisition of Anadarko, contingent on the company completing its acquisition.
“We have long believed that Occidental is uniquely positioned to generate compelling value from Anadarko’s highly complementary asset portfolio,” Occidental President and CEO Vicki Hollub said in the news release. “We are thrilled to have Berkshire Hathaway’s financial support of this exciting opportunity,”
April 29, 4:19 p.m.
Anadarko Petroleum Company announced its intention to continue negotiations with Houston-based petroleum company Occidental April 29 despite its announcement earlier this month it would enter an acquisition agreement with Chevron.
According to an Anadarko news release, the company is resuming its negotiations with Occidental Petroleum Company.
Anadarko’s board of directors unanimously agreed the Occidental proposal “could reasonably be expected to result in a ‘Superior Proposal’ as defined in the Chevron Merger Agreement,” according to the news release.
Occidental is reportedly offering to acquire Anadarko in a transaction worth $38 in cash and 0.6094 of a share of Occidental common stock per share of Anadarko stock. Chevron’s current offer is reportedly valued at $16.25 in cash and 0.3869 of a share of Chevron stock per share of Anadarko stock.
Occidental filed its offer to Anadarko on April 24.
“The Anadarko board’s determination allows Anadarko to resume negotiations with Occidental in accordance with the Chevron Merger Agreement,” the release states. The board reaffirmed its recommendation to proceed with the existing transaction with Chevron, the April 29 release stated.