Chevron Corp.’s proposed acquisition of Hess Corp. had cleared the Federal Trade Commission (FTC)’s antitrust review, satisfying one closing condition for the $53-billion deal, the company said in a release Sept. 30 (OGJ Online, Feb. 29, 2024).
On Sept. 30, 2024, the FTC said that a majority of the FTC Commissioners voted to accept a consent agreement among the FTC, Chevron, and Hess. To facilitate completion of the merger and address a concern raised by the FTC about Mr. Hess’ communications with a limited number of OPEC officials, Mr. Hess will not be appointed to the Chevron board of directors. Instead, he will serve as an advisor to Chevron on government relations and social investments in Guyana.
“This is an important step toward completing the merger, which will benefit our shareholders, the industry, and the country of Guyana, and add world class assets to our already advantaged portfolio,” said Chevron chairman and chief executive Mike Wirth. With said it is “unfortunate that our board of directors will not get the benefit of [John Hess’s] decades of global experience, but we look forward to drawing upon his knowledge, relationships and experience in Guyana through his service as an advisor to Chevron.”
In its own 8-K filing with the SEC, Hess Corp. said its board of directors believes that the competitive concern raised about Mr. Hess’ communications is without merit, and that his public and private communications with OPEC officials were consistent with his communications with US government officials, the International Energy Agency, and global business leaders.
Completion of the merger remains subject to other closing conditions, including the satisfactory resolution of ongoing arbitration proceedings with ExxonMobil Corp. regarding preemptive rights in the Stabroek block joint operating agreement (OGJ Online, Mar. 6, 2024).
