Mon Sep 23 22:30:32 UTC 2024: ## Chevron-Hess Merger Gets FTC Approval, Exxon Challenge Remains
**New York, NY** – The U.S. Federal Trade Commission (FTC) is poised to approve the $53 billion acquisition of Hess Corporation by Chevron Corporation as early as this week, clearing a major hurdle for the deal. This leaves Exxon Mobil’s challenge as the final obstacle for the merger to be finalized.
The deal, first announced in October 2022, has faced scrutiny from both the FTC and Exxon Mobil, which claims a right of first refusal for Hess’s Guyana assets. The FTC has completed its investigation, while Exxon’s challenge is expected to be addressed by a three-judge arbitration panel in May 2025.
The Guyana assets are highly coveted due to their significant oil and gas reserves, estimated at over 11.6 billion barrels. Exxon operates all production in the region with a 45% stake, while Hess and CNOOC are minority partners.
The merger is one of several recent consolidation deals in the U.S. oil and gas industry, reflecting the ongoing trend of industry consolidation. Chevron’s acquisition of Hess follows Exxon’s purchase of Pioneer Natural Resources and Occidental Petroleum’s acquisition of CrownRock, all of which closed despite facing regulatory scrutiny.
While the FTC has given its initial approval, the dispute with Exxon over the Guyana assets could delay the finalization of the deal until the second half of 2025.
The proposed merger has been met with mixed reactions from the market. Hess shares surged following the news of the FTC’s expected approval, while Chevron shares have lagged behind the broader energy market due to uncertainty surrounding the deal.
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