Noble Energy Inc. and Chevron Corp., the two US oil giants, are about to complete a merger & acquisition deal. In early October, 90% of the Noble shareholders voted for being acquired by Chevron.
The information on the merger agreement was first reported in the media in July 2020. Experts say that the deal valued at almost $13 billion has been the largest one in the oil industry since the breakout of the COVID-19 pandemic. A communiqué by Noble Energy reads that both sides are ready to finalize the deal in Q4 this year.
In essence, Chevron is going to take over all Noble Energy’s stock worth $5 billion plus its debt of $8 billion. The pandemic battered the value of Noble Energy’s shares. Besides, the company is heavily in debt. According to the merger & acquisition agreement, Noble Energy’s shareholders are due to receive 0.1191 Chevron’s shares per each share in their possession. Experts reckon that Noble Energy’s shareholders will own roughly a 3% stake in the united corporation. `
Noble Energy Inc., a major oil and natural gas exploration and production company, began its history 85 years ago. The corporation manages oil and gas holdings in the US, in the East Mediterranean Sea, and along the West Coast of Africa. Nevertheless, with such high-quality reserves, the company cannot survive on its own amid the tough pandemic challenge.
