By Dave Sebastian

 

Noble Energy Inc. shares rose about 9.8% in premarket trading Monday after Chevron Corp. said it plans to buy Noble for about $5 billion.

The combination would be the largest oil-patch tie-up since the Covid-19 pandemic delivered a shock to the industry. The deal was first reported by The Wall Street Journal.

The all-stock takeover values Noble at $10.38 a share or 0.1191 Chevron share. The deal would represent a roughly 7.6% premium over Noble's closing price of $9.65 on Friday. Including Noble's debt load, the deal would be valued at about $13 billion.

Chevron shares were down about 1.3% in premarket trading.

 

Write to Dave Sebastian at dave.sebastian@wsj.com

 

(END) Dow Jones Newswires

July 20, 2020 06:50 ET (10:50 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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