The American oil company Chevron has successfully finished the purchase of HESS Corporationfor a total of 53,000 million dollars (45,685 million euros), a transaction that was announced in October 2023. This acquisition was carried out after obtaining a favorable result in arbitration related to the asset ‘offshore’ of HESS in Guyana, in response to a claim filed by Exxonmobil.
Restriction uprising by the Federal Commerce Commission
In a significant stepthe United States Federal Federal Commission (FTC) has raised the previous restrictionthus racing the way for John HESS, former delegate of HESS, can join the Board of Directors of Chevron, subject to the corresponding approval.
Mike Wirth statements, president and CEO of Chevron
Mike Wirth, president and CEO of Chevron, commented: «This fusion of two large American companies brings together the best of industry». Wirth stressed that the merger will improve and expand the company’s growth profile in the next decade, thus generating greater long -term value for shareholders.
Fusion agreement details
According to the terms of the merger agreement, HESS’s shareholders will receive 1,0250 shares from Chevron for each HESS action. In this sense, Chevron plans to issue around 301 million ordinary shares of his treasury to HESS shareholders as part of the transaction. On the other hand, the 15.38 million ordinary shares of HESS that Chevron owned and were acquired in open market operations, were canceled without consideration.
Exxonmobil position against arbitration
Exxonmobil has expressed its disagreement with the interpretation of the case by the Panel of the International Arbitration Court (CCI). However, the company has expressed its respect for the arbitration and dispute resolution process.
Exxonmobil declaration on contractual compliance
In relation to the case, Exxonmobil has communicated: «Exxonmobil and CNOOC agree that we had the duty to guarantee the constant compliance of the contractual terms and not sitting a bad precedent for us or the industry».
Exxonmobil warning about the right of tanteo
After the HESS Acquisition Agreement by Chevron, Exxonmobil had previously warned that both she and the Chinese state of the National Offshore Oil Corporation (CNOOC) had a right of scoring on the participation of HESS in Guyana. For this reason, they presented a motion of arbitration to address this issue.