American oil giant, Chevron has sealed a deal to acquire Algerian oil firm after entering into a definitive agreement with Anadarko Petroleum to acquire all of its outstanding shares in a stock and cash transaction valued at $33 billion, or $65/share.
Under the terms of the agreement, Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each Anadarko share.
The acquisition consideration is structured as 75 percent stock and 25 percent cash. Chevron will issue 200-million shares, pay $8-billion in cash and will assume about $15-billion of net debt.
The move, according to a report by The Nerve Africa, will significantly enhance Chevron’s upstream portfolio and further strengthen its leading positions in large, attractive shale, deepwater and natural gas resource basins. Chevron also expects the acquisition to “add to free cash flow and earnings per share as well as boost the company’s share repurchase rate by $1-billion to $5-billion a year upon closing of the deal.”
Anadarko is the largest foreign oil producer in Algeria and in 2018, the Texas headquartered company celebrated 20 years of oil production in Algeria. The company also operates in Ghana, Mozambique and South Africa.