Chevron's Acquisition of Hess Expected to Get FTC Approval, Paving the Way for a $53 Billion Deal
By Sabrina Valle
The U.S. Federal Trade Commission is set to give the green light to Chevron's acquisition of Hess, possibly this week, according to sources familiar with the matter. This move would clear the path for the $53 billion deal, with Exxon Mobil's challenge being the final obstacle.
The merger was initially announced last October, with the FTC sending a follow-up information request to Chevron two months later. The uncertainty surrounding the deal's closure has caused Chevron's shares to dip by 1% this year, while the energy share fund XLE saw a 6.5% increase.
Exxon Mobil and CNOOC Ltd, Hess's partners in a joint venture in Guyana, are contesting the deal by asserting their right of first refusal to any sale of Hess's Guyana assets, which are the main attraction in this proposed merger.
Analysis:
In simple terms, Chevron is on the verge of completing a major acquisition of Hess, a move that could significantly impact the oil industry. If the deal goes through, it could lead to changes in the market dynamics and potentially affect the stock prices of the companies involved. Investors should keep an eye on this development as it unfolds, as it could offer lucrative opportunities or pose risks depending on how the situation plays out.