Woodlands-based Anadarko Petroleum informed on Wednesday that it has withdrawn its offer to acquire Apache Corporation.
Chairman, President and CEO Al Walker said in a statement that a non-binding, all-stock transaction, which included a “modest” premium, was recently sent to Apache Corporation.
A Bloomberg report puts Apache’s current value at above $20 billion while Anadarko is valued at around $34.5 billion.
According to Walker, the transaction would have been highly accretive to Anadarko on a cash flow per-share basis, even before synergies.
“Our efforts to enter into a mutually acceptable confidentiality agreement for the purpose of exploring the merits of a potential transaction were summarily rejected and no discussions of substance occurred,” he added.
Anadarko is unwilling to pursue the transaction without access to detailed non-public information, and Walker confirmed that based on Anadarko’s analysis, which shows that Apache appears to trade at or near full value currently, the offer was withdrawn.
Anadarko is currently pursuing the development of an LNG project in Mozambique and it is close to submitting the development plan to the government, with an FID expected in March.
LNG World News Staff; Image: Anadarko