Chevron on Friday announced plans to acquire oil and gas producer Anadarko Petroleum in a cash and stock deal the company valued at $33 billion.
Shares of Anadarko rose nearly 5% in the premarket following the news.
The deal values Anadarko at $65 per share. Based on Chevron's closing price of $46.80 on April 11, Anadarko shareholders will receive 0.3869 shares of Chevron and $16.25 in cash for each Anadarko share.
The deal, which is subject to shareholder and regulatory approval, is expected to close in the second half of 2019. If approved, Chevron said it plans to boost its annual share buyback program to $5 billion from $4 billion.
"This transaction will unlock significant value for shareholders, generating anticipated annual run-rate synergies of approximately $2 billion, and will be accretive to free cash flow and earnings one year after close," Chevron's Chairman and CEO Michael Wirth said in a statement.
This story is developing. Please check back for updates.
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