CVX Chevron Corporation

By Colin Kellaher

Chevron Corp. (CVX) on Thursday said it won't increase its $33 billion offer to buy Anadarko Petroleum Corp. (APC), ceding the takeover target to Occidental Petroleum Corp. (OXY).

The San Ramon, Calif., energy giant said it will instead take the $1 billion termination fee it is due from Anadarko and increase its share repurchase rate by 25% to $5 billion a year.

"Winning in any environment doesn't mean winning at any cost," said Michael Wirth, Chevron's chairman and chief executive. "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."

Anadarko earlier this week said Occidental's $38 billion bid was superior to its deal with Chevron, which was given four business days to make another offer.

Chevron said it will allow the match period to expire, adding that it expects Anadarko will terminate the merger agreement.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

May 09, 2019 08:53 ET (12:53 GMT)

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