Chevron agrees Hess CEO will not join board in deal with FTC – Bloomberg

Chevron (NYSE:CVX) agreed that Hess (HES) CEO John Hess will not join the merged company’s board as part of an agreement with the U.S. Federal Trade Commission that would allow the companies planned merger to proceed, Bloomberg reported Thursday.

Chevron (CVX) previously had said Hess would join its board once the deal was complete and become one of the company’s biggest shareholders.

Completing the FTC process would remove a major hurdle to the transaction, but to finalize the deal, Chevron (CVX) still needs to prevail in arbitration over Exxon Mobil’s (XOM) right-of-first-refusal claim on Hess’ (HES) 30% stake in Guyana’s huge oil discovery.

Chevron (CVX) and Hess (HES) shares both trade ~1% lower, as oil stocks post broad losses alongside crude oil futures following reports that Saudi Arabia is set to raise production.