Hess Corp. shareholders approved Chevron Corp.’s $53 billion takeover despite reservations among several prominent investors about a dispute with Exxon Mobil Corp. over a key asset offshore Guyana.
Hess shareholders approved the deal during a meeting
Tuesday, the company said in a statement Tuesday. The company’s shares
initially fell on the news but then recovered, climbing as much as 1%.
“We are very pleased that the majority of our stockholders
recognize the compelling value of this strategic transaction,” Chief Executive
Officer John Hess said.
The affirmation is a major win for Chevron and Chief
Executive Officer Mike Wirth, who sought to secure a stake in the biggest oil
discovery of the past decade by acquiring Hess and its 30% interest in an oil
field offshore Guyana. In the final days leading up to the vote, John Hess, the
longest-serving major oil boss, personally lobbied shareholders to back the
deal.
The transaction still needs to get past the U.S. Federal
Trade Commission as well as the ongoing arbitration case brought by Exxon over
control of Hess’ interest in the oil field offshore Guyana. Exxon has said the
proceedings may drag into 2025.
Hess investors including HBK Capital Management Group LP and
D.E. Shaw & Co. had publicly announced plans to abstain from the vote,
arguing that the takeover premium was insufficient to account for the risk from
the arbitration Exxon filed over Guyana in March. Exxon has asserted it has a
right-of-first refusal over Hess’s most valuable asset — the stake in an 11
Bbbl field offshore Guyana — which is operated and 45% owned by the Texas oil
giant.
For Chevron, the addition of Hess’ assets is aimed at
arresting investor concerns about the California driller’s long-term growth
prospects.
The vote also is a capstone for John Hess, 70, whose father
founded the company almost a century ago. John Hess controls roughly 10% of the
company’s common stock and will take a seat on Chevron’s board at the
conclusion of the deal.