US FTC allows Chevron-Hess deal, bars John Hess from board
Adds comment from the companies and FTC and background in paragraphs 4-6, 8-18
By Jody Godoy
NEW YORK, Sept 30 (Reuters) -The U.S. Federal Trade Commission allowed Chevron's CVX.N $53 billion purchase of Hess Corp HES.N on Monday, in an order that barred Hess CEO John Hess from Chevron's board.
The FTC's order leaves Exxon Mobil's XOM.N challenge to the deal, which is expected to stretch deep into next year, as its final hurdle.
The proposed merger included a Chevron board seat for Hess when it was first announced last October, and the FTC sent a second information request to Chevron two months later.
Chevron Chairman and CEO Mike Wirth welcomed the completion of the FTC's review on Monday, but called it unfortunate that John Hess would not be allowed to join the board.
"I have the utmost respect for John, the company he has built, and the contributions he has made to our industry," he said.
The FTC alleged that Hess -- the son of Hess Corp founder Leon Hess -- had communicated publicly and privately with members of the Organization of the Petroleum Exporting Countries (OPEC) group of oil producers, and encouraged high-level representatives of the group "in their stated mission to stabilize global oil markets."
Allowing him to join Chevron's board "would amplify Mr. Hess's supportive messaging to OPEC and others, thereby meaningfully increasing the likelihood that Chevron would align its production with OPEC's output decisions to maintain higher prices," the FTC said.
Hess' board believes the claims are meritless, the company said in a statement.
"Mr. Hess' public and private communications with OPEC officials were consistent with his communications with U.S. government officials, the International Energy Agency and global business leaders on what will be needed to ensure an affordable and orderly energy transition," the company said.
The allegations are similar to the FTC's claims against former Pioneer Natural Resources PXD.N CEO Scott Sheffield, who was barred from joining Exxon Mobil's board when the FTC reviewed its $60 billion acquisition of Pioneer.
Sheffield has sought to have the claims withdrawn.
The two cases are "an important step towards ensuring that U.S. oil producers are serving as a competitive check on OPEC+ rather than subordinating their independent decision-making to the goals set by a cartel," FTC Chair Lina Khan and the Commission's two other Democratic members said on Monday.
The FTC's two Republican commissioners voted against the Chevron-Hess action, calling it politically motivated and lacking basis in antitrust law.
"The proposition that Mr. Hess's comments could move global oil markets is laughable," said Commissioner Andrew Ferguson.
The deal will still need to clear a challenge by Exxon Mobil and CNOOC Ltd 0883.HK, Hess's partners in a Guyana joint venture, who claim a right of first refusal to any sale of Hess's Guyana assets, the prize in the proposed merger.
A three-judge arbitration panel is due to consider the case next May. Chevron and Hess say a decision is expected by August, while Exxon Mobil expects it by September 2025.
John Hess will be allowed to advise Chevron on discussions with Guyanese government officials, according to the FTC order.
The proposed all-stock acquisition is one of the largest in a consolidating U.S. oil and gas industry where several multibillion-dollar deals have been disclosed.
Reporting by Jody Godoy; Editing by Katharine Jackson and Jonathan Oatis
Actifs liés
Dernières actualités
Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.
Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.
Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.
