The Federal Trade Commission will approve oil major Chevron's (CVX) $53 billion U.S. acquisition of Hess Corp. (HES), according to multiple media reports.
The approval by the U.S. regulator clears a major hurdle to Chevron completing its acquisition of Hess, which was first announced in October 2023.
However, the deal still faces an obstacle in the form of a challenge by Exxon Mobil (XOM), which is a partner with Hess in a Guyana oil project.
Exxon has challenged the deal in court by claiming a right of first refusal to any sale of Hess's Guyana assets, which is one of the main attractions to Chevron.
The matter is to be decided by a three-judge arbitration panel next summer.
The proposed all-stock acquisition of Hess is one of the largest deals in the history of the U.S. oil patch and builds on a wave of consolidation sweeping the sector.
Exxon's $60 billion U.S. purchase of shale giant Pioneer Natural Resources closed in May of this year.
Occidental Petroleum's (OXY) takeover of CrownRock and Diamondback Energy's (FANG) purchase of Endeavor Energy Resources have also closed in recent months.
Prior to today (Sept. 24), Chevron’s stock had declined 1% this year to trade at $147.54 U.S. per share.
The stock of Hess Corp. had fallen 7% this year and was trading at $135.34 U.S. a share.
