FTC Approves Chevron-Hess Deal, Prohibits John Hess from Board Position – Reuters

Chevron’s Acquisition of Hess Approved by FTC

WASHINGTON – The U.S. Federal Trade Commission has approved Chevron’s $53 billion acquisition of Hess Corporation, but the order restricts Hess CEO John Hess from joining Chevron’s board.

This approval leaves a significant challenge from Exxon Mobil regarding the merger, which is anticipated to continue well into next year. Originally announced last October, the merger had provisions for a Hess seat on Chevron’s board, and the FTC sought additional information from Chevron shortly after the announcement.

Exxon and CNOOC Ltd, partners of Hess in a joint venture in Guyana, are contesting the acquisition, arguing that they have a right of first refusal concerning the sale of Hess’s Guyana assets, a key component of the merger.

A three-judge arbitration panel is set to examine the case in May 2025. Chevron and Hess expect a ruling by August, while Exxon anticipates a decision by September 2025.

This proposed all-stock acquisition marks one of the largest transactions in a rapidly consolidating U.S. oil and gas sector, amidst a wave of other multi-billion dollar deals in the industry.