Noble’s shareholders will be cashing in on the deal at $10.38 per share as an all-stock transaction. The entire acquisition has been valued at $13 billion, which includes any debt on the company’s books.
In the grand scheme of energy mergers and acquisitions, the Chevron-Noble deal is incomparably small. Take the $38 billion sale of Anadarko to rival Occidental Petroleum Corp in 2019 for example. That said, Chevron’s acquisition of Noble Energy has generated new-found confidence in the robust nature of the U.S. energy sector.
The transaction has been approved by both Chevron and Noble Energy’s board of directors, with plans to fully finalize the deal in the fourth quarter of 2020, pending Noble shareholder and regulatory approval. It remains to be seen whether more energy-based acquisitions will occur in the remainder of 2020.
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