Global energy giant Chevron announced on November 9, the company will cost 4.3 billion acquisition of Atlas Energy, which will make Chevron the opportunity to enter the vast market of non conventional natural gas resources; British Petroleum the company also announced on the 13th, offer 466 million U.S. dollars acquisition of Brazilian ethanol producers Cerradinho 50 of Group assets, which greatly expand the company s business in the field of bio fuels scale.
In view of two other well known participants in the energy sector, Exxon Mobil and Shell, respectively, for the natural gas industry had carried out large scale acquisitions, the recent expansion of global energy giant, a move described as deregulation.
Chevron notice more acquisitions
According to Chevron, a statement issued last Tuesday, the company will be 3.2 billion cash acquisition of Atlas Energy, and assume the latter 1.1 billion of debt, which totaled 4.3 billion size of the transaction is expected to be completed in the first quarter of 2011; The Atlas Energy s shareholders will receive $ 38.25 per share in cash, a premium over the market value of about 20 .
Chevron chief executive John Watson said the company made the acquisition of Atlas Energy for three reasons. First, the acquisition will be developed Chevron Luce shale gas well in North America the opportunity to Marseille, and shale gas well is the company s recent major acquisition targets, and has completed the acquisition in Poland, Romania and Canada page rock wells; Second, the current downturn in the global natural gas prices temporarily, while Marcel Luce North American natural gas shale is one of the lowest cost, which actually increase the cost of this transaction; In addition, Marcel Loose shale near the northeast United States natural gas market, making the deal as an attractive investment.
Not only that, Watson also notice , said Chevron will be more acquisitions coming; the event of a favorable self development and acquisition opportunities, the company will consider implementing the acquisition. Prior to that, Chevron claimed that the medium term development objective is to achieve annual average increase of the next four and 2014 2017 1 annual average increase of 4 to 5 ; But Watson stressed that the future Chevron of any acquisition will be based on economic reasons rather than deliberately expanding the company portfolio of specific categories of resources.
Focus on different expansion strategy
Chevron before the above action, Exxon Mobil has implemented the company s largest acquisition in history, but also the largest since 2006, mergers and acquisitions of energy is of 410 billion acquisition of U.S. gas giant XTO Energy Inc, the transactions have been completed in the second quarter of this year; and Shell oil companies join forces in the International Investment Limited, in late August this year, the acquisition of Australian coal bed methane company Arrow Energy. A series of transactions, highlighting the global energy giants on the non oil energy projects and the expansion of interest in the assets profit ambitions.
Just last Saturday, British Petroleum also announced 466 million U.S. dollars offer to buy Brazilian ethanol producers Cerradinho half the assets of the Group to increase bio fuel business in the proportion of the company s business. BP James, head of biofuels, Primrose said the company hopes to abundant resources such as Brazil and lower cost markets, achieve significant business growth and huge profits; and for this transaction, the British Petroleum resources with high quality raw sugar will help the company expand the use of the proceeds of the acquisition of ethanol production scale.
U.S. media said the current round of resource products in the pursuit of economic crisis, received by the market, the financial property is greatly stimulated, which is the energy giants have shot an important reason for expanding business. And because the companies have different resources, its business restructuring, expansion and key steps are also differences. To be sure, the global expansion of the energy industry trend of large mergers and acquisitions will continue for some time, and the giant difference between the expansion strategy over time will gradually blurred.
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