Chevron, Noble Energy merge into single corporation
Two of the oldest oil and gas companies in the United States – Noble Energy and Chevron – have announced their merger.
Noble Energy shareholders approved the deal in a vote earlier this month – the biggest such accord since the onset of the COVID-19 pandemic.
The deal takes the form of a share exchange – Noble Energy shareholders will receive 0.1191 Chevron shares for every share they currently own. On the basis of the value of Chevron shares at the moment the agreement was clinched, the total value of the deal stands at $5 billion.
The two sides plan to complete the deal in the fourth quarter of 2020. Under its terms, Noble Energy shareholders will hold about 3 % of the combined company.
Noble Energy, whose operations date back more than 85 years, works in exploration and extraction of oil and gas. The company oversees a portfolio of high-quality assets in the United States as well as in the eastern Mediterranean and on the West Africa coast.
Two other companies – Devon Energy and WPX Energy – announced their intention to merge last month.
Last year. Chevron bought its competitor Anadarko for $33 billion.