NEW YORK: Hess Corp shareholders have approved Chevron Corp’s US$53bil takeover despite reservations among several prominent investors about a dispute with Exxon Mobil Corp over a key asset, according to people familiar with the move.
Hess shareholders approved the deal during a virtual meeting on Tuesday, according to the people who declined to be identified because the matter isn’t public yet.
The affirmation is a major win for Chevron and chief executive officer 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, Hess chief executive officer (CEO) John Hess, the longest-serving major oil boss, personally lobbied shareholders to back the deal.
The transaction still needs to get past the US 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, planned to abstain from the vote, arguing the takeover premium was insufficient to account for the risk from the arbitration.
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. — Bloomberg
