Oxy, Anadarko $38B merger clears antitrust hurdle

Occidental Petroleum’s $38 billion acquisition of rival Anadarko has moved closer to completion as the U.S. antitrust regulators have given it an approval.

Occidental informed on Tuesday the U.S. Federal Trade Commission had granted early termination of the waiting period under the HSR Antitrust Improvements Act of 1976, thus concluding the antitrust review of the proposed transaction in the U.S.

“The termination of the waiting period under the HSR Act satisfies one of the conditions to the closing of the pending acquisition, which remains subject to other customary closing conditions, including approval from Anadarko’s stockholders. The acquisition is expected to close in the second half of 2019,” Occidental said.

Occidental’s proposed acquisition of Anadarko has drawn criticism from activist investor Carl Icahn who said last week Occidental should’ve put itself up for sale instead of pursuing the acquisition.

Icahn has also criticized Oxy’s $10 billion financing agreement signed with Warren Buffet’s Berkshire Hathaway and has also rued the company’s move to pay a large part of the merger in cash and avoiding a shareholder vote.

The activist shareholder has filed a lawsuit against Oxy, seeking court permission to view certain books and records by Occidental.

Responding to Icahn, Oxy said it was committed to maximizing long-term value for all shareholders, and that the acquisition of Anadarko would create “a global energy leader with a highly complementary asset portfolio and a unique opportunity to deliver compelling value and returns to the shareholders of both companies, including significant cost and capital allocation synergies and near-term cash flow accretion.”

“With respect to the suit seeking access to certain “books and records” of Occidental, we will respond in due course,” Oxy said last week.

Offshore Energy Today Staff

Related:

Icahn slams Oxy’s ‘fundamentally misguided’ buy of Anadarko – 2019/05/31

Anadarko, Oxy sign takeover deal – 2019/05/10

Chevron drops Anadarko takeover pursuit. Takes $1B termination fee – 2019/05/09

Anadarko: Oxy’s revised takeover bid superior to Chevron’s – 2019/05/07

Total looking to buy Anadarko’s African assets from Oxy for $8.8 billion – 2019/05/06

Buffett’s Berkshire Hathaway to invest $10B in Oxy subject to Anadarko takeover – 2019/04/30

Oxy in swoop for Anadarko. Says its bid superior to Chevron’s – 2019/04/24

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