Chevron-Hess Merger Could Soon Get FTC Approval: Report

Chevron Corporation CVX shares are trading higher on Monday. The oil giant’s merger with Hess Corporation HES may see a ray of hope, with the deal reportedly expected to receive Federal Trade Commission approval sooner.

In May 2024, Hess shareholders approved the proposed $53 billion merger. However, the deal still required regulatory approval and was expected to face arbitration with Hess’ partners in Guyana, which could push the deal into 2025. 

The U.S. Federal Trade Commission may approve Chevron’s $53 billion acquisition of Hess as early as this week, reported Reuters.

In August, Exxon Mobil Corporation XOM and its partner CNOOC Ltd filed arbitration claims, asserting their right of first refusal to any sale of Hess’ stake in a Guyana oil-producing joint venture.

The arbitration panel is expected to hear these claims in May 2025, further delaying the deal.

Related: Exxon Mobil Arbitration Throws Wrench in Chevron-Hess Merger Timeline: Report

As per Reuters, Chevron and Hess expect a decision by August, while Exxon anticipates it will come by September 2025.

Notably, in July, the final members were appointed to a three-person arbitration panel tasked with resolving the Exxon Mobil dispute over the $53 billion merger. The deal was initially planned to close in the first half of the year.

Investors can gain exposure to the Chevron via E.A. Series Trust Strive U.S. Energy ETF DRLL and SPDR Select Sector Fund – Energy Select Sector XLE.

Price Action: CVX shares are up 1.12% at $149.20 and HES is up 1.97% at $138.00 premarket at the last check Tuesday.

Photo by Jonathan Weiss on Shutterstock

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