Chevron's $53 billion Hess acquisition cleared after arbitration ruling

Investing.com -- Chevron (NYSE: CVX)’s $53 billion acquisition of Hess Corp (NYSE: HES). can now proceed after an arbitration panel ruled in favor of Hess in its dispute with Exxon Mobil Corp (NYSE: XOM).

The International Chamber of Commerce oversaw the arbitration, which centered on Exxon’s claim that it had a right of first refusal to purchase Hess’s stake in the Stabroek block in Guyana, where Exxon also holds a stake.

Hess and Chevron successfully argued that the right of first refusal clause did not apply to the sale of Hess’s entire company.

The decision represents a significant victory for Chevron, ending a period of strategic uncertainty that negatively impacted its stock price and raised questions about the company’s due diligence when it agreed to acquire Hess in October 2023.

Chevron CEO Mike Wirth had previously stated he would abandon the acquisition if Hess and Chevron lost the arbitration case.

The deal was first announced over 20 months ago.

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