In a bold move that underscores its unwavering commitment, Chevron Corp. has quietly snapped up 4.99% of Hess Corp.’s outstanding common stock, even as its high-stakes $53 billion acquisition of Hess remains entangled in arbitration disputes.
The strategic purchase, disclosed in a securities filing Monday, signals Chevron’s confidence in overcoming the remaining hurdles and finalizing the mega-merger, despite legal headwinds from Exxon Mobil Corp. and China National Offshore Oil Corporation (CNOOC).
Chevron Seizes Opportunity at a Discount
Between January and March, Chevron acquired 15.38 million Hess shares through open market transactions. The purchase came at prices below the implied value in the merger agreement’s exchange ratio, further reinforcing the energy behemoth’s belief in the deal’s ultimate success.
“Chevron’s continuing confidence in the consummation of the pending acquisition of Hess” was cited as the driving force behind the move, according to the filing. The acquisition isn’t just about confidence—it’s a strategic gambit, a financial chess move in an oil industry consolidation race worth billions.
