Chevron Corp put up a proxy filing according to which the company is on the verge to acquire Noble Energy’s holdings with its $5 billion offer following the previously revealed aim of taking at least 50% of Noble’s stake which runs natural-gas fields in Eastern Mediterranean.
Noble Energy first attempted to find a parneter for financing the invesment which was required for its Leviathan expansion. Noble stated this in the filing at Securities and Exchange Commission last year. Leviathan owned by Noble is one of the last decade’s biggest offshore gas discoveries in the world which is already operational and engaged in supplying gas to Israel, Egypt and Jordan.
If the all-stock merger executed it will give hike to Chevron’s U.S. shale oil holdings and will gain the large amount of natural gas assets off in the Eastern Mediterranean.
However, Noble saw a loss of $4 billion in its first quarter amid COVID-19 pandemic which pushed its board to think for the sale of company instead of a regional partnership.
In February, the company first didn’t agree for U.S. oil giant Chevron’s attempt to prcoeed to acquire and visit the Leviathan facility but later accepted a confidentiality agreement to initiate the talks and review on its operations in the region.
Noble communicated with eight companies to know their interest in taking stake of its Eastern Mediterranean holdings. While it is said that the consortiums by six major companies other than Chevron possessed either “high risk” or “did not result in any material benefit.”
Chevron bid for Noble holdings with a price of $10.38 a share which was a 7.5% premium to the market price before the commencement of deal. The total purchase price set is approximately $13 billion after assuming the debt.