The U.S. Federal Trade Commission (FTC) is anticipated to approve Chevron’s $53 billion acquisition of Hess Corp. as early as this week, according to sources familiar with the situation. This approval would mark a significant step for Chevron, leaving only a challenge from Exxon Mobil as the final hurdle before the merger can be finalized.
The merger was initially announced in October 2023, and the FTC had requested additional information from Chevron two months later. Following the news of the likely approval, Hess shares rose by 3% in after-hours trading.
Chevron’s stock has seen a decline of 1% this year amid uncertainty regarding the merger, in contrast to a 6.5% increase in the broader energy sector. Exxon and CNOOC Ltd., Hess’s partners in a key Guyana joint venture, are contesting the deal, claiming they have a right of first refusal on any sale of Hess’s assets in Guyana, which are central to the proposed merger.
A three-judge arbitration panel will consider this case in May 2025, with Chevron and Hess expecting a decision by August, while Exxon anticipates a ruling by September 2025.
This proposed all-stock acquisition is one of the largest in the U.S. oil and gas industry, which has seen several major mergers recently, including Exxon’s $60 billion acquisition of Pioneer Natural Resources, completed in May.
The FTC previously required Exxon to withdraw its offer for a board seat at Pioneer due to allegations of collusion with OPEC to manipulate oil prices, which Sheffield has denied.