Kevin Crowley and Leah Nylen, Bloomberg News
HOUSTON/WASHINGTON
EnergiesNet.com 09 26 2024
Chevron Corp. agreed that Hess Corp. Chief Executive Officer John Hess won’t join the company’s board as part of an agreement with the US Federal Trade Commission allowing the companies’ merger to proceed, people familiar with the matter said.
The condition allows Chevron to move forward with its $53 billion acquisition of Hess, said the people who asked not to named discussing non-public information. Chevron had previously said Hess would join its board once the deal was complete and become one of the company’s biggest shareholders.
To finalize the deal, however, Chevron still needs to prevail in arbitration over Exxon Mobil Corp.’s right-of-first-refusal claim on Hess’ biggest asset — a 30% stake in a huge Guyanese oil discovery.
The FTC and Chevron declined to comment. Hess didn’t respond to requests for comment.
Completing the FTC process would remove a major hurdle to Chevron’s biggest transaction in more than a decade. The companies agreed to the deal in October and have said the arbitration process will likely take until the third quarter of 2025.
The FTC has take a more active approach to major oil and natural gas deals this year, delaying several transactions beyond usual time frames.
–With assistance from Mitchell Ferman.
bloomberg.com 09 26 2024
