Chevron Triumphs in $53B Hess Acquisition Following Monumental Legal Feud With Exxon
Chevron Corp. has successfully finalized its colossal $53 billion acquisition of Hess Corp., bringing a close to a historic 20-month legal standoff against competitor Exxon Mobil. The International Chamber of Commerce in Paris ruled in favor of Chevron on Friday, granting the oil titan access to what is deemed the largest oil discovery of the century.
The coveted prize is Hess’s 30% stake in the highly productive Stabroek Block off the coast of Guyana, which boasts more than 11 billion barrels of oil. Exxon and China’s CNOOC had asserted a right of first refusal over Hess’s assets, however, the arbitration panel sided with Chevron’s argument that the preemptive right did not apply to the sale of the entire company.
Chevron shares leaped 3.6% in premarket trading following the announcement, while Hess surged 7.4%. The deal is projected to drive substantial free cash flow and production growth into the 2030s, with Chevron targeting $1 billion in annual cost synergies by the end of 2025.
Source: CNBC