Investors Scrutinize Confirmation of Anadarko Acquisition by Occidental

FOR IMMEDIATE RELEASE

MEDIA CONTACT: Stefanie Spear, [email protected], 216-387-1609

Berkeley, CA—August 8, 2019—Anadarko Petroleum Corp shareholders voted today to approve the oil and gas producer’s $38 billion sale to Occidental Petroleum Corp — the largest merger seen in the oil and gas industry since Royal Dutch Shell Plc acquired BG Group Ltd. in 2016. This acquisition adds more than $40 billion of debt to Occidental’s capital structure and further scale to its already large position in the Permian Basin, according to Moody’s Investors Service.

Occidental secured a controversial $10 billion financing agreement with Warren Buffett’s Berkshire Hathaway that allowed it to raise the cash portion of its offer to avoid its own shareholder vote on the deal. 

Danielle Fugere, president of As You Sow, made the following statement regarding today’s vote:

“The acquisition of Anadarko by Occidental represents a big bet in a world where production of oil must decrease in line with global climate goals. Investors are watching carefully as signs of trouble in the industry grow and are increasingly skeptical of how moves like that of Occidental will position the company for the coming low-carbon energy transition.”

Lila Holzman, energy program manager at As You Sow, made the following statement regarding today’s vote:

“At a time when Big Oil must transition into Big Energy to stave off the worst impacts of the climate crisis, long-term investors view Occidental’s acquisition of Anadarko as a risky move. It further increases the company’s carbon footprint and therefore its direct contribution to the value destruction that climate change brings. The company will continue to face increased pressure and scrutiny from investors regarding how it will reduce this footprint instead of grow it.”

For more information on As You Sow’s work on climate change, click here.

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As You Sow is a nonprofit organization that promotes environmental and social corporate responsibility through shareholder advocacy, coalition building and innovative legal strategies. Click here to see As You Sow’s shareholder resolution tracker.

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