Oil and gas producer Anadarko Petroleum said today it agreed to acquire Kerr-McGee and Western Gas Resources in separate cash deals totalling $21.1 billion.
Anadarko plans to acquire Kerr-McGee for $16.4 billion, or $70.50 a share, plus the assumption of $1.6 billion debt and liabilities. The offer represents a 40 per cent premium to Kerr-McGee's closing stock price of $50.30 yesterday.
Woodlands, Texas-based Anadarko also agreed to buy Western Gas for $4.7 billion, or $61 a share, and to assume $600 million of debt and liabilities. The Western Gas offer represents a 49 per cent premium to the company's closing price of $40.91.
Anadarko made the acquisitions to expand in the fast-growing Gulf of Mexico and the Rocky Mountains regions
Anadarko's shares fell almost 5 per cent to $46 in pre-market trading, Kerr-McGee rose about 37 per cent to $68.94, and Western Gas climbed about 45 per cent to $59.57.
Anadarko said it will finance the deals through a $24 billion, 364-day committed acquisition facility provided by UBS, Credit Suisse and Citigroup.