WASHINGTON (Reuters) – The U.S. Federal Trade Commission allowed Chevron (NYSE:CVX)’s $53 billion purchase of Hess Corp (NYSE:HES) on Monday, in an order that barred Hess CEO John Hess from Chevron’s board.
The FTC’s order leaves Exxon Mobil (NYSE:XOM)’s challenge to the deal, which is expected to stretch deep into next year, as its final hurdle.
The proposed merger included a Chevron board seat for Hess when it was first announced last October, and the FTC sent a second information request to Chevron two months later.
Exxon and CNOOC (NYSE:CEO) Ltd, Hess’s partners in a Guyana joint venture, are challenging the deal by claiming a right of first refusal to any sale of Hess’s Guyana assets, the prize in the proposed merger.
A three-judge arbitration panel is due to consider the case in May 2025. Chevron and Hess say a decision is expected by August, while Exxon expects it by September 2025.
The proposed all-stock acquisition is one of the largest in a consolidating U.S. oil and gas industry where several multi-billion dollar deals have been disclosed.
This post is originally published on INVESTING.
