FTC confirms Chevron-Hess deal approval barring John Hess from board

Chevron (NYSE:CVX) and Hess (HES) said Monday the Federal Trade Commission completed an antitrust review of their proposed merger, and the companies confirmed that Hess CEO John Hess will not be appointed to the Chevron board; Hess shares +0.7%, Chevron +0.5%.

The Hess (HES) CEO previously had expected to join Chevron’s (CVX) board once the deal was complete and become one of the company’s biggest shareholders; instead, Hess will serve as an advisor to Chevron on government relations and social investments in Guyana.

Allowing him to join Chevron’s (CVX) board “would amplify Mr. Hess’s supportive messaging to OPEC and others, thereby meaningfully increasing the likelihood that Chevron would align its production with OPEC’s output decisions to maintain higher prices,” the FTC said, a claim Hess (HES) said is “without merit.”

“Mr. Hess’ public and private communications with OPEC officials were consistent with his communications with U.S. government officials, the International Energy Agency and global business leaders on what will be needed to ensure an affordable and orderly energy transition,” the company said.

The FTC’s order leaves Exxon Mobil’s (XOM) challenge to the deal, which is expected to stretch until August or September 2025, as its final hurdle.