$4.1B Chevron Bid Wins Noble Shareholder Vote

$4.1B Chevron Bid Wins Noble Shareholder Vote
It cements one of the US oil industry's biggest transactions this year.

(Bloomberg) -- Noble Energy Inc. shareholders approved the company’s acquisition by Chevron Corp., cementing one of the U.S. oil industry’s biggest transactions this year.

The vote on Friday during a virtual shareholder meeting came despite opposition from Elliott Management Corp. The activist hedge fund was said to seek a break-up of the deal because it thought Chevron wasn’t paying enough. The biggest proxy-advisory firms disagreed and urged investors to support the tie-up.

When Chevron agreed to buy Noble in an all-stock deal in July, the offer was valued at $5 billion and represented a premium of about 7.5% to the target company’s share price. Since then, the deal value has declined by almost $1 billion as the coronavirus-fueled collapse in crude demand hammered oil equities.

About 10% of votes were cast against the deal, according to a regulatory filing after U.S. stock markets closed.

For Noble, the acquisition offered a path forward at a time when peers are struggling to outlast stubbornly low oil prices and investor frustration with a sector that has largely failed to generate meaningful returns. Chevron, meanwhile, gained a massive natural gas presence in the Eastern Mediterranean, while beefing up its shale footprint back in the U.S. after it walked away from a deal to buy Anadarko Petroleum Corp. last year.

© 2020 Bloomberg L.P.



WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.