Strategic Thinking of Anadarko Acquisition by Chevron

摘要

Chevron announced its acquisition of Anadarko Petroleum Corporation at $50 billion on April 12, 2019. These two corporations have quite similar asset type and asset location; thus, the cost of integration was low. The value of assets would be greatly promoted for both corporations after integration, and Anadarko could improve its finances with the aid of Chevron's unstinted cash flow to defend itself against the slump in oil price. Chevron's payment would mostly be given in shares and debt. It leveraged a lot of assets by using a small amount of cash and thus was under small financial pressure. The acquisition was a win-win deal and could achieve a 1+1>2 result by maximizing the potential of both corporations. There is something to be learned from this transaction.