Chevron Responds To Exxon And Acquires Hess For $53 Billion

This is a period of great change in the petrochemical sector. Just a few days ago, on October 11, Exxon Mobile closed a huge $59 billion deal to buy Pioneer Natural Resources.

Now it’s time for another major player in the US petrochemical market, California-based Chevron, which has entered into a definitive agreement with Hess Corporation to acquire all of its outstanding shares worth $53 billion, at $171 per share. The total transaction value, including debt, is $60 billion: for each Hess share, shareholders will receive 1.0250 Chevron shares.

The acquisition opens up Chevron’s rich Stabroek block in Guyana, which will help expand and diversify the company’s already rich portfolio. “This combination allows Chevron to strengthen the long-term performance and further expand our portfolio by adding world-class businesses,” explained Chevron President and CEO Mike Wirth. “It is important to note that our two companies have similar values and cultures.”

The boards of directors of the two companies unanimously approved the transaction, which is expected to be completed by the first half of 2024. After this, John Hess will join the Chevron board of directors.