Chevron, the US-based energy company and the operator of the giant Gorgon and Wheatstone LNG projects in Australia, has decided to back out of the Anadarko takeover deal.
Chevron said that, under the terms of its previously announced merger agreement with Anadarko Petroleum, it will not make a counterproposal and will allow the four-day match period to expire.
Accordingly, Chevron anticipates that Anadarko will terminate the merger agreement.
“Winning in any environment doesn’t mean winning at any cost. Cost and capital discipline always matter, and we will not dilute our returns or erode value for our shareholders for the sake of doing a deal,” said Chevron’s chairman and CEO Michael Wirth.
Upon termination of the merger agreement, Anadarko will be required to pay Chevron a termination fee of $1 billion.