FTC allows Chevron-Hess deal, bars John Hess from board

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.

Source: Investing.com