An arbitration panel sided with Hess and Chevron, who argued the merger was a corporate deal, not an asset sale|Buhler013|CC BY-SA 4.0
Chevron has finalized its $53 billion acquisition of Hess Corp., ending a 20-month battle and fending off Exxon Mobil’s attempt to block the deal.
An arbitration court ruled Exxon had no right to interfere, rejecting its claim of preemption rights over Hess’s 30% stake in Guyana’s Stabroek oil block.
Chevron CEO Mike Wirth called the decision a “straightforward reading of a contract” and criticized the delays, saying Hess employees and shareholders were unnecessarily dragged into the dispute.
Boost to global portfolio
The deal boosts Chevron’s global oil portfolio, particularly through Hess’s Guyana holdings, helping close its competitive gap with Exxon.
Shares in Chevron initially rose 3% but later fell 1.1%, while Exxon dropped 3.1%. The merger adds valuable international assets to Chevron’s existing base in the Permian Basin.
Hedge funds win, leadership expands
The merger rewards hedge funds like Millennium and Pentwater that bet on its completion. Hess shareholders will receive 1.025 Chevron shares per Hess share.
The FTC also cleared the way for Hess CEO John Hess to join Chevron’s board.