- Chevron's $53 Billion Purchase of Hess Corp Approved by FTC, with Restrictions on CEO John Hess
By Jody Godoy
In a groundbreaking decision, the U.S. Federal Trade Commission has given the green light to Chevron's acquisition of Hess Corp for $53 billion. However, there is a catch - Hess CEO John Hess will not be allowed to join Chevron's board.
This move by the FTC marks the final hurdle for the deal, with Exxon Mobil's challenge still pending. The proposed merger initially included a board seat for John Hess, but the FTC raised concerns and sent a second information request to Chevron.
Chevron's Chairman and CEO, Mike Wirth, expressed his disappointment at the ruling, praising John Hess and his contributions to the industry. The FTC alleged that Hess had improper communications with OPEC members, influencing global oil markets.
Despite the allegations, Hess Corp maintains that John Hess's communications were in line with industry standards. This case mirrors a similar situation with Pioneer Natural Resources' former CEO, Scott Sheffield.
While the FTC's decision has received mixed reactions, it has significant implications for the oil and gas industry. The deal still faces challenges from Exxon Mobil and CNOOC Ltd, Hess's partners in a joint venture in Guyana.
Overall, this acquisition is a major development in the ongoing consolidation of the U.S. oil and gas sector, with several other major deals in the pipeline. Stay tuned for further updates on this evolving story.
Analysis: This article discusses the FTC's approval of Chevron's acquisition of Hess Corp, highlighting the restrictions placed on Hess CEO John Hess. The decision has far-reaching implications for the oil and gas industry, with potential challenges from other players in the market. Investors should closely monitor developments in this space to assess the impact on their portfolios and make informed decisions.
