HomeIndustriesHess Shareholders Approve $53 Billion Chevron Merger

Hess Shareholders Approve $53 Billion Chevron Merger

Shareholders of Hess Corporation have approved a $53 billion deal that will see the energy company merge with oil and gas giant Chevron.

The approval is the first step in the process, with the U.S. Federal Trade Commission’s (FTC) review of the merger expected to take place in the coming weeks.

 “We are very pleased that the majority of our stockholders recognize the compelling value of this strategic transaction and look forward to the successful completion of our merger with Chevron,” Hess CEO John Hess said in a statement.

While FTC is expected to give the green light for the merger, Hess and Chevron face another hurdle in getting the merger over the finishing line. Exxon and China National Offshore Oil Corp. (CNOOC) are challenging the deal by claiming that they have a right of first refusal on Hess’ stake in Guyana’s offshore oil patch known as Stabroek Block.

Exxon, CNOOC, and Hess have a joint operating agreement on Stabroek Block, with Hess holding a 30% stake in the oil patch. Exxon and CNOOC filed for arbitration in March to enforce the right of first refusal, and if successful, the Hess and Chevron merger would be terminated. If Exxon and CNOOC are unsuccessful, the merger is expected to be complete at some point in 2025.

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