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Hess Shareholders Approve Takeover By Chevron

Shareholders of Hess Corp. (HES) have voted in favour of the company’s $53 billion U.S. takeover by rival Chevron Corp. (CVX).

A majority of Hess stockholders have voted to support the acquisition, though an exact vote tally has not been made public.

“We are very pleased that the majority of our stockholders recognize the compelling value of this strategic transaction,” said Hess chief executive officer (CEO) John Hess in a written statement.

While the support of Hess shareholders is a positive development, the deal must still be approved by U.S. regulators.

Additionally, Chevron must resolve a dispute with oil major ExxonMobil (XOM), which claims to have a right of first refusal over Hess’ assets in Guyana under a joint operating agreement.

Hess has a 30% stake in the Stabroek Block offshore oil patch, while Exxon leads the development with a 45% claim. China National Offshore Oil Corp. holds the remaining 25%.

Chevron has repeatedly maintained that Exxon’s claim under the joint operating agreement does not apply to its acquisition of Hess.

The dispute looks headed to court. Hess has said that the deal’s completion depends on the situation with ExxonMobil being resolved.

If Exxon wins and the Chevron-Hess deal terminates, Hess will remain a standalone company and maintain its stake in the Stabroek Block.

The Chevron-Hess deal was originally slated to close in the first half of this year, but that timeline now looks likely to be pushed out to 2025.

The stock of Chevron has increased 6% so far in 2024 and currently trades at $159.04 U.S. per share.

Hess’ stock is up 5% year to date and trading at $152.05 U.S. a share.