WASHIGNTON- US oil giant Chevron said on Thursday that it would not make a counter-offer for Anadarko Petroleum, yielding victory to its competitor Occidental Petroleum which is expected to take over the American oil group.
Occidental Petroleum Corp. will move forward with its $38 billion takeover of Anadarko Petroleum Corp., the oil industry’s biggest deal in at least four years, after Chevron Corp. bowed out of the bidding.
Anadarko said late on Thursday it reached a definitive agreement to sell itself to Occidental and that it has paid a $1 billion breakup fee to Chevron, which earlier elected not to sweeten its offer for the independent producer. The world’s third-largest oil explorer by market value said it will instead increase its share buybacks by 25%. Occidental confirmed it will go ahead with the acquisition.