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

By Jody Godoy

NEW YORK (Reuters) – On Monday, the U.S. Federal Trade Commission (FTC) approved Chevron’s (NYSE: CVX) $53 billion acquisition of Hess Corp (NYSE: HES), with the condition that Hess CEO John Hess will not be part of Chevron’s board.

The FTC’s order leaves Exxon Mobil (NYSE: XOM) as the final barrier to the deal, with challenges expected to continue into next year.

Initially, the merger included a board seat for Hess, a proposal made when the deal was first announced last October. However, after a second information request from the FTC two months later, the current ruling emerged.

Chevron’s Chairman and CEO Mike Wirth expressed disappointment at John Hess’s exclusion from the board, stating his respect for Hess and his contributions to the industry.

The FTC raised concerns about Hess’s past communications with the Organization of the Petroleum Exporting Countries (OPEC), suggesting that his presence on Chevron’s board could lead to alignment with OPEC’s production strategies, potentially raising oil prices.

Hess Corp’s board dismissed the FTC’s allegations as baseless, insisting that Hess’s interactions with OPEC officials were not unlike those with U.S. government representatives and other global energy leaders.

The case draws parallels to earlier complaints against former Pioneer Natural Resources CEO Scott Sheffield, who was similarly barred from joining Exxon Mobil’s board. These cases are seen as vital for preventing U.S. oil producers from subordinating their decisions to OPEC+.

FTC Chair Lina Khan and other Democratic commissioners criticized the dissenting Republicans for their stance, with Commissioner Andrew Ferguson mocking the claim that Hess’s comments could influence oil markets.

The acquisition is still facing challenges from Exxon Mobil and CNOOC (NYSE: CEO) Ltd regarding Hess’s assets in Guyana, which are pivotal to the merger. An arbitration panel is set to review this case in May, with a ruling expected by August, while Exxon anticipates a decision by September 2025.

Despite the ruling, the FTC will allow John Hess to advise Chevron on discussions with the Guyanese government.

This all-stock acquisition stands out as one of the largest in a rapidly consolidating U.S. oil and gas industry, amid multiple significant deals being unveiled.