Hess shareholders approve merger with Chevron

According to initial voting results, Hess Corp has approved its $53 billion merger with Chevron, the second-largest oil company in the United States. The merger required a majority vote from the outstanding 308 million shares of Hess to pass, although the exact vote tally has not yet been provided by the company. Chevron’s offer to acquire Hess was made last October as a strategic move to access the lucrative offshore fields in oil-rich Guyana. However, the merger has been delayed due to ongoing reviews by the U.S. Federal Trade Commission and an arbitration claim filed by Exxon Mobil and CNOOC, Hess’ partners in Guyana. Despite these challenges, the approval of the merger is seen as a victory for Hess CEO John Hess and resolves concerns from certain shareholders who sought additional compensation for the delay in closing the sale. However, the arbitration process initiated by Exxon could potentially delay the deal’s closure until 2025.
According to Mark Kelly, an analyst at financial firm MKP Advisors, if Chevron emerges as the winner in the arbitration against Exxon or reaches a settlement, the transaction will proceed as planned.