Hess shareholders greenlight Chevron merger

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Hess Corporation’s shareholders have approved the company’s merger with Chevron Corporation, according to Hess.

At the May 28 special meeting of Hess stockholders, a majority of the outstanding shares of Hess common stock voted in favor of the adoption of the merger agreement.

Chief Executive Officer, John Hess, said, “We are very pleased that the majority of our stockholders recognize the compelling value of this strategic transaction and look forward to the successful completion of our merger with Chevron. Together we will be positioned as a premier integrated energy company, with the leadership, asset portfolio and financial resources to deliver significant shareholder value for years to come.”

Hess will file the final voting results with the U.S. Securities and Exchange Commission after certification by its inspector of election.

Hess said no approval of Chevron stockholders is required in connection with the merger. However, completion of the merger remains subject to other closing conditions, including satisfactory resolution of ongoing arbitration proceedings.

Following Chevron’s announcement of its agreement to acquire Hess, Exxon and Hess raised a dispute, arguing that they have pre-emption rights to Hess’ 30% stake in the Stabroek Block before Hess could be sold to Chevron. Chevron and Hess believe the pre-emption clause in the Stabroek Block joint operating agreement does not apply to their merger. 

Hess has said the dispute could push the conclusion of the merger to 2025. Chevron and Hess are working to complete the merger as soon as practicable, Hess said.

Hess has requested an arbitration tribunal to hear the merits of the dispute in the third quarter of 2024, with a view of having an outcome by the end of the year

Hess is also facing three lawsuits over disclosures in the Chevron deal.

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