FTC Set to Approve Chevron’s $53 Billion Acquisition of Oil Rival Hess, Sources Say – By Reuters

By Sabrina Valle

The U.S. Federal Trade Commission is anticipated to approve Chevron’s acquisition of Hess as early as this week, according to sources familiar with the situation. This leaves Exxon Mobil’s challenge to the $53 billion merger as the final obstacle.

The proposed merger was first announced last October, and in December, the FTC issued a second information request to Chevron. The uncertainty surrounding the completion of the deal has caused Chevron’s stock to decline by 1% this year, while energy sector funds have seen a 6.5% rise.

Exxon and CNOOC Ltd., which are partners in a joint venture with Hess in Guyana, are contesting the merger by asserting they have a right of first refusal on the sale of Hess’s valuable Guyana assets, which are central to the proposed deal.