Chevron Corp abandoned its takeover bid for Anadarko Petroleum Corp on Thursday, outmaneuvered 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, one-quarter Chevron’s size, is the likely victor in a contest that again proved the allure of U.S. 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 U.S. shale field.
Chevron declined to revise its 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 U.S. oil producer, stands to receive a $1 billion breakup fee.