WASHINGTON (Reuters) – In a significant move, the U.S. Federal Trade Commission has approved Chevron’s $53 billion acquisition of Hess Corp, with some conditions. The deal, which was announced last October, faced scrutiny from various parties, including Exxon Mobil and CNOOC Ltd.
The FTC’s order includes a provision that bars Hess CEO John Hess from joining Chevron’s board, a decision that has implications for both companies. Exxon Mobil’s challenge to the deal remains the final hurdle, with a resolution expected in the coming months.
One of the key points of contention is Hess’s Guyana assets, which are part of a joint venture with Exxon and CNOOC. The three companies are locked in a legal battle over the sale of these assets, with an arbitration panel set to make a decision in 2025.
The proposed merger between Chevron and Hess is part of a trend of consolidation in the U.S. oil and gas industry, where major deals worth billions of dollars have been taking place. The outcome of this deal could have far-reaching implications for the sector.