September 25, 2024

FTC Expected to Approve Chevron’s Purchase of Hess this Week 🚨

The U.S. Federal Trade Commission is expected to approve Chevron’s $53 billion acquisition of Hess as early as this week, according to two sources familiar with the matter. This approval will leave Exxon Mobil’s challenge to the deal as the final hurdle.

Exxon, along with its partner CNOOC Ltd, claims a right of first refusal to Hess’s Guyana assets, complicating the merger. A ruling on the matter is expected by mid-2025.

The deal marks a significant consolidation in the U.S. oil industry, following Exxon’s $60 billion purchase of Pioneer Natural Resources. Hess shares rose 3% in after-hours trading after the news broke, while Chevron’s shares have dipped 1% this year. The merger, once completed, will strengthen Chevron’s position in the global oil market.

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