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By Micah Maidenberg
Chevron Corp. ended its pursuit of Anadarko Petroleum Corp., saying it won't increase its $33 billion offer to buy the shale driller and ceding the takeover target to Occidental Petroleum Corp.
The concession likely ends the fight between Chevron and Occidental to control more of the Permian Basin, the chief engine of the U.S. shale boom.
Chevron said Thursday that it would 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.
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.
Production from Permian Basin, which spans more than 75,000 square miles of West Texas and New Mexico, has more than doubled in recent years and makes up about one-third of total U.S. crude output, according to the Energy Information Administration.
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(END) Dow Jones Newswires
May 09, 2019 09:12 ET (13:12 GMT)
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