Chevron’s US$5bil deal for Noble ends drought

Takeover: The logo for Chevron appears above a trading post on the floor of the New York Stock Exchange. Chevron Corp says it will acquire Noble Energy in an all-stock deal valued at US$5bil. — AP

BENGALURU: Chevron Corp’s surprise US$5bil all-stock deal for oil producer Noble Energy should spell the end of this year’s deal drought, setting a price benchmark that will trigger more buys, according to mergers and acquisition bankers, lawyers and analysts.

The Covid-19 pandemic destroyed fuel demand and left dozens of energy companies without the prospect of drilling their way out of debt. They may now be more willing to entertain deals with the Chevron offer as a standard.