Hess Investors Vote in Favor of $53 Billion Chevron Takeover

Transaction Still Needs to Get Past FTC and the Ongoing Arbitration Case Brought by Exxon
John Hess and Mike Wirth
Hess Corp. CEO John Hess (left) and Chevron CEO Mike Wirth. “We are very pleased that the majority of our stockholders recognize the compelling value of this strategic transaction,” Hess said. (Jeenah Moon/Bloomberg News)

[Stay on top of transportation news: Get TTNews in your inbox.]

Hess Corp. shareholders approved Chevron Corp.’s $53 billion takeover despite reservations among several prominent investors about a dispute with Exxon Mobil Corp. over a key asset.

Hess shareholders approved the deal during a meeting May 28, the company said in a statement. The company’s shares initially fell on the news but then recovered, climbing as much as 1%.

“We are very pleased that the majority of our stockholders recognize the compelling value of this strategic transaction,” CEO John Hess said.

The affirmation is a major win for Chevron and CEO Mike Wirth, who sought to secure a stake in the biggest oil discovery of the past decade by acquiring Hess and its 30% interest in a Guyanese field. In the final days leading up to the vote, John Hess, the longest-serving major oil boss, personally lobbied shareholders to back the deal.


Robby Hamby of Bridgestone Americas and Ken Eggen of Wolf River Express share how fleets should acquire the right tire monitoring tools for data collection. Tune in above or by going to RoadSigns.ttnews.com.  

The transaction still needs to get past the U.S. Federal Trade Commission as well as the ongoing arbitration case brought by Exxon over control of Hess’ interest in the Guyanese field. Exxon has said the proceedings may drag into 2025.

Hess investors including HBK Capital Management Group LP and D.E. Shaw & Co. had publicly announced plans to abstain from the vote, arguing that the takeover premium was insufficient to account for the risk from the arbitration Exxon filed over Guyana in March. Exxon has asserted it has a right-of-first refusal over Hess’s most valuable asset — the stake in an 11 billion-barrel field off the coast of Guyana — which is operated and 45% owned by the Texas oil giant.

For Chevron, the addition of Hess’ assets is aimed at arresting investor concerns about the California driller’s long-term growth prospects.

The vote also is a capstone for John Hess, 70, whose father founded the company almost a century ago. John Hess controls roughly 10% of the company’s common stock and will take a seat on Chevron’s board at the conclusion of the deal.

Want more news? Listen to today's daily briefing below or go here for more info: