Noble Energy said that its shareholders have approved the company’s pending all-stock merger worth $5 billion with rival US oil and gas company Chevron.

The company’s shareholders also approved other proposals pertaining to the merger at its special meeting of shareholders.

Noble Energy and Chevron expect to wrap up their merger early in Q4 2020.

David L. Stover – Noble Energy Chairman and CEO said: “We are pleased that Noble Energy shareholders resoundingly support the pending transaction with Chevron.

“Today’s approval marks an important milestone on the path to becoming part of an even stronger global energy platform. We thank our shareholders and other stakeholders for recognizing the many benefits that will be realized, and the significant value that will be created, through this combination.”

As per the merger deal announced in July, Chevron will exchange 0.1191 of its shares for each share of Noble Energy. The deal values each share of Noble Energy at $10.38.

After including debt, the total consideration for the purchase of Noble Energy is $13 billion.

Chevron is acquiring Noble Energy to add low-cost, proven reserves and attractive undeveloped resources that will boost its already advantaged upstream portfolio. Apart from that, Noble Energy is expected to enhance Chevron’s US unconventional position with de-risked acreage in the DJ Basin and 92,000 largely contiguous and adjacent acres located in the Permian Basin.

  Chevron, David L. Stover, Noble Energy, USA