Hess Corporation shareholders have greenlit Chevron’s $53 billion acquisition, despite facing hurdles with Exxon Mobil. The deal’s completion rests on resolving arbitration over Exxon’s claims to Hess’ Guyana assets.
CEO John Hess expressed satisfaction, highlighting the merger’s strategic value. However, uncertainties linger as Exxon’s claim under a joint operating agreement complicates matters.
Chevron and Hess warned of termination if Exxon’s claim prevails, leading to a delay in the initial timeline. While Chevron remains confident, Exxon’s CEO anticipates arbitration extending into 2025.
Hess shareholders approve Chevron acquisition despite ongoing Exxon dispute, completion depends on arbitration resolution.
ISS urged caution, advising Hess shareholders to abstain from the vote until more clarity emerges on the arbitration process’s duration. In contrast, Glass Lewis recommended approval, citing the deal’s strategic and financial merits.
The arbitration outcome will determine the fate of the merger, with Hess potentially continuing as a standalone entity if the deal falls through, retaining its stake in the Stabroek Block.
Regulatory scrutiny from the Federal Trade Commission continues, with Chevron expecting a decision soon.
The completion of this significant deal will shape the future face of the energy industry, with both companies poised for significant strategic shifts depending on the arbitration’s outcome.
