Hess investors approve $53bn Chevron takeover, clearing major hurdle

Reading Time: 2 minutes

Hess Shareholders Approve $53bn Takeover by Chevron Amidst Controversy

In a high-stakes battle between oil giants, Hess shareholders have given the green light to a $53 billion takeover by Chevron. The controversial acquisition has been at the center of a heated dispute between America’s leading oil companies.

Despite concerns raised by rival ExxonMobil over an arbitration process, investors voted on Tuesday to accept Chevron’s offer. Exxon argues that it has a right of first refusal over any sale of Hess’s stake in a lucrative oil find off the coast of Guyana.

John Hess, the chief executive of Hess, expressed his satisfaction with the outcome, stating, “We are very pleased that the majority of our stockholders recognize the compelling value of this strategic transaction and look forward to the successful completion of our merger with Chevron.”

The vote, which did not immediately release a tally of shareholder votes, was closely watched by Wall Street. Institutional Shareholder Services recommended that shareholders abstain from voting, calling for more information on Exxon’s arbitration. Three hedge funds had indicated they would abstain from voting as well.

While the vote clears a crucial hurdle for the acquisition, the deal’s fate still hangs in the balance pending an investigation by the Federal Trade Commission and the ongoing arbitration case between Exxon and Chevron. Chevron has stated that it will walk away from the deal if the arbitration finds in favor of Exxon.

The takeover, announced in October, was meant to mark the end of a nine-decade journey for Hess, transforming from a small heating oil business into a global oil giant. However, the deal was thrown into turmoil when Exxon filed for arbitration in March, citing pre-emption rights over the sale of Hess’s stake in the Guyana oil project.

Chevron remains optimistic about the outcome of the arbitration process and looks forward to completing the transaction. Exxon, on the other hand, anticipates a prolonged arbitration process that could extend into 2025.

As the saga continues to unfold, the oil industry braces for the impact of this landmark acquisition and the potential implications it may have on the future of oil exploration and production.