FTC to Postpone Decision on Chevron-Hess Amid Exxon Arbitration: Bloomberg

Chevron's Acquisition of Hess Faces Further Delays

The U.S. Federal Trade Commission (FTC) is set to postpone its decision on whether to block Chevron's $53 billion acquisition of Hess until an arbitration case with ExxonMobil is resolved, according to reports. The proposed merger already faces several roadblocks, further complicated by this regulatory delay.

Exxon's Arbitration Claim

The deal, initially intended to close within the first half of the year, hit a snag when ExxonMobil initiated arbitration proceedings in March. Exxon asserts a right of first refusal regarding Hess' assets in Guyana, a key element of the proposed merger. The arbitration panel, consisting of three members, is yet to commence reviewing Exxon's claims. A schedule for the proceedings is anticipated to be set within the upcoming weeks.

Proceedings Timeline

On June 19, Hess indicated that the arbitration process is progressing and expects a decision to be reached by the end of 2024. In contrast, Exxon has hinted that the arbitration could extend into 2025.

Conclusion

This regulatory pause by the FTC adds another layer of complexity to Chevron's acquisition efforts. As the arbitration timeline remains uncertain, stakeholders in the energy sector continue to watch closely. Both companies now await the forthcoming schedule and final decision from the arbitration panel.