Chevron buys Noble Energy for $5 billion. The US oil giant announced it has reached an agreement with the Houston oil and gas producer.
The transaction will be all-stock, with Chevron's offering pricing Noble at $10,38 per share or 0,1191 Chevron shares, a 7,5% premium over Noble's Friday close. The valuation rises to about $13 billion, if you include the debt.
Through this acquisition, Chevron will have the ability to expand its presence in the DJ Basin of Colorado and the Permian Basin through West Texas and New Mexico. Noble's assets also add to Chevron's operations in the Eastern Mediterranean and West Africa and would lead to an additional $300 million in annual cost savings.
Just minutes after the opening of Wall Street, Chevron stock dropped 0,6% to 86,62 dollars, while Noble Energy shares, which gained 11% in the pre-market, rose by 7,41% to 10,37 dollars, thus touching the offer price.
