Chevron's $53 Billion Purchase of Hess Corp Approved by FTC

By Jody Godoy

NEW YORK (Reuters) – The U.S. Federal Trade Commission (FTC) approved Chevron's $53 billion acquisition of Hess Corp on Monday, barring Hess CEO John Hess from joining Chevron's board.

The FTC's decision leaves Exxon Mobil's challenge as the final hurdle to the merger, expected to extend into next year. Initially, the merger included a seat on Chevron's board for Hess, announced last October, followed by a second information request from the FTC two months later.

Chevron Chairman and CEO Mike Wirth expressed disappointment over John Hess’s exclusion from the board but welcomed the completion of the FTC review.

The FTC alleged Hess communicated with members of OPEC and encouraged their mission to stabilize global oil markets, claiming his board position could increase Chevron's alignment with OPEC’s pricing strategies. Hess' board described the claims as meritless, asserting Hess's communications aligned with those of U.S. officials and leaders on energy transition efforts.

Similar allegations were made against Scott Sheffield, former CEO of Pioneer Natural Resources, who was barred from Exxon Mobil's board during a separate merger review.

FTC Chair Lina Khan noted these cases aim to ensure U.S. oil producers maintain independent decision-making rather than following OPEC's goals, despite dissent from the two Republican commissioners who deemed the claims unfounded.

The Chevron-Hess deal also faces challenges from Exxon Mobil and CNOOC Ltd over Hess's Guyana assets, with a decision from an arbitration panel expected by August. John Hess can still advise Chevron on discussions with Guyanese officials, per the FTC order.

This acquisition is one of the largest in a consolidating U.S. oil and gas sector, with multiple multibillion-dollar deals emerging recently.