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Re: Chevron to buy Noble Energy in $5 billion deal from SNL Energy Finance Daily Chevron, Noble Energy merger deal includes $176.3M termination feeByline: Stephen Cedric Jumchai The recently announced $13 billion merger between Chevron Corp. and Noble Energy Inc. includes a termination fee of $176.3 million payable to the oil major if the deal falls apart under certain circumstances, according to a July 21 SEC filing. The merger agreement, which was signed on July 20, includes termination rights for the two companies. If Chevron were to terminate the deal because of a change in recommendation from Noble Energy's board, or if Noble Energy were to enter into a definitive agreement under alternative acquisition proposal, Noble would have to pay the termination fee. The agreement set a deal closing deadline of Jan. 20, 2021, but noted that if companies have not gotten all the required regulatory approvals by then but all the other closing conditions have been satisfied or waived then the end date will be extended to April 20, 2021. The U.S. oil major previously received a termination fee of $1 billion for when it attempted to merge with Anadarko Petroleum Corp. The deal was terminated after Anadarko received a higher offer from Occidental Petroleum Corp. |
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