Hess shareholders approve merger with Chevron

By Sabrina Vale

HOUSTON (Reuters) – Hess Corp on Tuesday approved the company’s $53 billion merger with No. 2 U.S. oil company Chevron, according to preliminary voting results.

The merger required a majority vote to approve the deal by a majority of the 308 million Hess shares outstanding to be approved. The company did not immediately provide a vote count.

Chevron offered to acquire Hess last October in a bid to gain a foothold in Guyana’s lucrative oil-rich offshore fields. The deal has been stalled by an ongoing review by the US Federal Trade Commission and clouded by an arbitration claim filed by Hess’ Guyana partner, Exxon Mobil and CNOOC.

The result is a victory for Hess CEO John Hess and puts an end to claims from some shareholders who wanted additional compensation for the delay in closing the sale. Exxon’s arbitration could push the deal’s closing to 2025.

“Assuming Chevron wins the Exxon arbitration or finds a settlement, the transaction will happen now,” said Mark Kelly, an analyst at financial firm MKP Advisors.

(This story has been refiled to remove the extra word ‘some’ in paragraph 4)

(Reporting by Sabrina Valle)