Chevron Corp drops Anadarko takeover battle

HOUSTON: Chevron Corp abandoned its takeover bid for Anadarko Petroleum Corp, outmanoeuvred by Occidental Petroleum Corp’s higher, $38 billion offer that included more than three times as much cash. With a financing assist from billionaire investor Warren Buffett, Occidental, which is one-quarter the size of Chevron, is the likely victor in a contest that again proved the allure of US shale. Occidental has said it plans to shed most of Anadarko’s non-shale properties in a deal that would cement its position in the Permian Basin of West Texas and New Mexico, the top US shale field. Chevron declined to raise its initial offer after Occidental boosted the cash portion of its $76 per share bid and Anadarko’s board deemed it a superior offer. Chevron, the No 2 US oil producer, received a $1 billion breakup fee, which it has said it will apply to a $5 billion share repurchase programme. — Reuters