Chevron Corporation will acquire Atlas Energy Inc in a transaction valuing the latter at $4.3 billion, including Atlas Energy?s currently outstanding debt.

Atlas Energy Inc is one of the largest independent natural gas producers in the Appalachian and Michigan Basins and a leading producer in the Marcellus Shale in Pennsylvania.

Reliance Industries (RIL) has an interest in Atlas Energy, as part of a string of investments it made in shale gas acreage acquisitions this year.

In April, RIL had bought 40% stake in Atlas Energy Inc, and said it will invest $1.7 billion in Atlas?s core Marcellus Shale acreage position.

When contacted on Tuesday, an RIL spokesperson said the company was aware of the development, but had no immediate comment to offer.

In the transaction announced on Tuesday, Atlas Energy shareholders will receive $43.34 per share in total, a 37% premium to Atlas Energy?s closing share price on November 8.

Atlas Energy shareholders will receive $38.25 in cash for each outstanding share, and will also get a pro-rata share of a distribution of over 41 million units of Atlas Pipeline Holdings, L.P, a media release from Atlas Energy said.

Edward E. Cohen, chairman and CEO of Atlas Energy, observed, ?All of our shareholders should benefit from this sale and upon its completion, Atlas will have achieved a return of well over 800% since its initial public offering less than 6 1/2 years ago. All of our employees and shareholders should know that, through Chevron?s acquisition of Atlas Energy, we will be bringing into the Marcellus Shale one of the world?s largest corporations, an energy company second to none in its skills and dedication to excellence.?

He added that this augurs well for customers and suppliers, joint venture partners, and those employees who will be continuing with Chevron.

Jefferies & Company, Inc. is acting as lead financial advisor, and Deutsche Bank Securities, Inc. is serving as co-financial advisor, to Atlas Energy. Wachtell, Lipton, Rosen & Katz is legal advisor to Atlas Energy. Goldman, Sachs & Co is serving as financial advisor to Chevron, and Skadden Arps Slate Meagher Flom LLP is acting as legal advisor to Chevron.