TOTAL S.A. (ENXTPA:FP) reached a binding agreement to acquire various participating interests in assets in Algeria, Ghana, Mozambique and South Africa from Anadarko Petroleum Corporation for $8.8 billion.
The transaction is contingent upon Occidental Petroleum Corporation entering into and completing its proposed acquisition of Anadarko Petroleum Corporation and to approval by the relevant authorities. As of September 30, 2019, the transaction follows receipt of all requisite approvals by the relevant authorities and partners. The Purchase and Sale Agreement includes customary termination rights for both Occidental and Total, including the right to terminate the Purchase and Sale Agreement if no portion of the Transactions have been consummated by December 1, 2020. The deal is expected to close in 2020. On September 30, 2019, TOTAL S.A. completed the acquisition of Anadarko's 26.5% operated interest in the Mozambique LNG project for a purchase price of $3.9 billion. The proceeds of the deal will be used to fund a portion of the cash consideration for the acquisition of Anadarko Petroleum Corporation by Occidental Petroleum Corporation. The acquisition is expected to be free cash flow positive from 2020. In January 2020, Occidental completed the sale of South Africa assets to Total. The closing of the sale of the remaining Africa Assets is conditioned on the receipt of required regulatory and government approvals, as well as other customary closing conditions.
Dan Burch of MacKenzie Partners, Inc. acted as financial advisor to Occidental Petroleum Corporation. Lauren Angelilli, Daniel Cerqueira, Kara Mungovan, Arvind Ravichandran, Faiza Saeed, George Schoen, Kate Stamell, Christine Varney, Allison M. Wein and Jesse Weiss of Cravath Swaine & Moore acted as legal advisor to Occidental Petroleum Corporation parent of Anadarko Petroleum Corporation. Lazard Frères Banque SA acted as financial advisor to Occidental Petroleum Corporation. Weil, Gotshal & Manges LLP, Paris acted as legal advisor to Total S.A.