Anadarko Oxy Merger Agreement
But the truth is that the real collapse of the business model came before the effects of COVID-19 were materialized. This is what happened on 4 March, when Russia temporarily withdrew from the OPEC agreement on export restraint, by deploying its two-month price war with Saudi Arabia. Indeed, the reality is that, since at least 2017, the shale economic model has been based on the willingness of these two countries and other major oil nations to voluntarily limit their own production and exports to artificially support crude oil prices. As we discovered in March – and we will probably find out in the future – they are not always ready to do so. The transaction was completed after the transaction was approved by Anadarko shareholders at a special meeting today. More than 99% of the actions voted in the Special Assembly voted in favour of the Western merger agreement. Occidental closed the transaction with Anadarko in May after bidding on Chevron Corporation. Oxy signed an $8.8 billion contract with Total SA earlier this week to sell assets in Algeria, Ghana, Mozambique and South Africa if the merger with Anadarko is completed (OGJ Online, May 6, 2019). A merger agreement between Anadarko Petroleum and Occidental Petroleum enters the approval phase. Anadarko entered into a definitive merger agreement with Oxy on May 9, following the termination of the previously announced merger agreement with Chevron. Anadarko paid a $1 billion termination fee to Chevron. The announcement comes after Anadarko shareholders approved the deal at a special meeting on Thursday. More than 99% of the votes voted in favour of the merger agreement.
The megadeal, the largest energy meltdown in three years, was completed shortly after 99 percent of the voting Anadarko shares. The merger will add nearly 5,000 Anadarko employees to Oxy`s 11,000 employees and create a combined company, which is the largest player in the booming Perm Basin in West Texas and one of the best producers in the Gulf of Mexico. Occidental Petroleum Corp. reported the successful acquisition of Anadarko Petroleum Corp. in a $55 billion deal, including the takeover of Anadarko`s debt. The agreement was approved in May (OGJ Online, May 10, 2019). She said that Oxy`s execution and efficiency, especially in the Perm, will pay more than for the Anadarko agreement in the years to come.