US oil companies Chevron and Occidental are battling to acquire Anadarko Petroleum, a big player in the shale-rich Permian Basin in Texas (SPENCER PLATT)

New York (AFP) – US oil group Anadarko said Monday that Occidental Petroleum’s takeover bid is “superior” to Chevron’s, amid a fierce battle over the company’s assets in the shale-rich Permian Basin in Texas.

After initially siding with Chevron, Anadarko reopened talks when Occidental raised its share price. Last week, Occidental also upped its cash offer to $38 billion.

Anadarko’s “board of directors… has unanimously determined that the revised acquisition proposal it received from Occidental Petroleum Corporation on May 5, 2019 constitutes a ‘Superior Proposal’ as defined in Anadarko’s previously announced merger agreement with Chevron Corporation,” a statement read.

“Anadarko intends to terminate the Chevron Merger Agreement in order to enter into a definitive merger agreement with Occidental in connection with the Revised Occidental Proposal.”

Under the new deal, Occidental would purchase Anadarko for $59 in cash and 0.2934 of a share of Occidental common stock per share of Anadarko common stock, a further increase by Occidental’s initial April 24 offer that came two weeks after Chevron’s.

However, Anadarko noted that Chevron has until Friday — and the deadline can be further “extended” — to propose revisions to its offer or m ake another proposal.

Should Anadarko terminate the deal with Chevron in order to enter into a definitive agreement with Occidental it would pay Chevron a $1 billion termination fee, in accordance with the parties’ contract.

A Chevron representative told AFP the company had received Anadarko’s notice, but declined to comment further.

Ahead of its latest offer, Occidental had raised its profile after American mega-investor Warren Buffett’s Berkshire Hathaway invested $10 billion to enable the mid-sized company to beat out the much bigger Chevron in the hostile takeover bid.

French energy giant Total said Sunday it has reached a deal to buy Anadarko’s assets in Algeria, Ghana, Mozambique and South Africa for $8.8 billion contingent upon the company completing its proposed buyout of Anadarko.

Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.