Deals, deals, deals! Chevron and GSK are expanding their horizons

By: Miguel A. Rodriguez

09:45, 14 September 2020

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The American and European companies impressed the markets

Another week, another acquisition. Actually… two purchases, but in different sectors.

The first one has in the foreground two companies from the energy sector: Chevron and Noble. Chevron announced that it would purchase Noble Energy Inc in an all-stock deal worth $5 billion.  The deal will strengthen Chevron's position in shale oil production. Also, it will give them access to the largest natural gas field in the Eastern Mediterranean – Leviathan. The Basin of Colorado and the Permian Basin received by Chevron from Noble could bring California-based company an annual cost saving of $300 million.

This deal is the largest in the United States energy sector this year, and it values Noble at $13 billion, debt included. 

Noble's stock price gained almost 9% in pre-market trading, while Chevron lost 0.1%. Overall, Noble's stock slid 61.1%, and Chevron's 27.2%. USA30 dropped by 6.5%.

The second deal of the day comes from the pharmaceutical sector. The British Giant,GlaxoSmithKline, just signed an agreement with the German CureVac. The deal implies research, development, manufacturing, and commercialization of five vaccines and antibodies. By this deal, GSK will have a 10% stake in the latter. The stake costs GSK 150 million EUR, out of which 120 million represents an upfront cash payment.  

It is the second deal that GSK closes this year after the one with Sanofi meant to develop a vaccine against COVID-19. 

Currently, GlaxoSmithKline is trading 0.37% lower. This year it lost 11%.

Sources: reuters.com, marketwatch.com, seekingalpha.com


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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.