Chevron Corporation has announced in a regulatory filing that it has acquired approximately 4.99% of Hess Corporation's (HES, Financial) common stock this year. This purchase underscores Chevron's confidence in completing its ongoing acquisition of Hess. In October 2023, Chevron agreed to acquire Hess in an all-stock transaction valued at $53 billion. This acquisition aims to secure Chevron's stake in the oil-rich Stabroek Block in Guyana and expand its operations in the U.S. shale oil sector.
While the proposed acquisition has already cleared the U.S. Federal Trade Commission's antitrust review, it faces a final hurdle due to ExxonMobil's (XOM) challenge to the deal. A panel of three judges will review the case later in May. Between January and March, Chevron purchased 15.38 million shares of Hess at a price below the exchange ratio specified in the merger agreement.
