Updated 5:55 p.m.

Anadarko Petroleum Corp. announced just after 5:30 p.m. May 9 it has entered into a definitive merger agreement with Occidental Petroleum Corporation under which Occidental will acquire all outstanding shares of Anadarko, according to a news release.

The company has terminated a merger with Chevron it had previously announced.

"We are pleased to have reached an agreement with Occidental that delivers significant, near-term value to our shareholders," Anadarko Chairman and CEO Al Walker said in the release. "We are proud of the substantial premium we have delivered to our shareholders and look forward to working with Occidental to ensure a smooth transition.”

The transaction's expected closing date is in the second half of 2019, according to the release.

5:16 p.m.
Chevron Corp. confirmed May 9 it has bowed out of a proposed deal to acquire The Woodlands-based Anadarko Petroleum Corp., which announced May 6 it considered a proposal from Occidental Petroleum to be a superior offer.

"We have great respect for Anadarko and its people," Chevron spokesman Kent Robertson said in an email May 9. "However, this was an opportunity for Chevron, not a necessity. An increased offer would have eroded value to our shareholders and diminished returns on our capital."

Anadarko Petroleum’s board of directors announced May 6 a revised proposition from Houston-based Occidental Petroleum Corp. was deemed “superior” to Chevron's offer.

Under the revised proposition, Occidental would acquire Anadarko at a rate of $59 in cash and 0.2934 shares of Occidental stock per share of Anadarko stock, according to a press release from Anadarko.

Chevron's offer had been valued at $16.25 in cash and 0.3869 of a share of Chevron stock per share of Anadarko stock.

Since Chevron's original announcement April 12, Occidental has countered with several offers culminating in the May 6 announcement by Anadarko that the company was now favoring Occidental.

As of the end of the business day May 9, Anadarko and Occidental had not yet released statements confirming the deal, but an Anadarko spokesman said in a phone call with Community Impact Newspaper earlier that day a statement would be forthcoming.