Hess Corp (NYSE:HES) shareholders have approved the proposed $53 billion merger with Chevron Corporation (NYSE:CVX, ETR:CHV), setting the stage for Chevron to acquire a valuable asset in Guyana.
The deal move will give Chevron a foothold in the significant oil discoveries made by rival Exxon Mobil in the region. The merger marks a significant step for both companies, although several hurdles remain.
The deal still requires regulatory approval and must overcome a legal challenge from Exxon and CNOOC, Hess's partners in Guyana.
They claim the right of first refusal on any sale of Hess's Guyana assets. Regulatory approval could come as soon as next month, according to Wall Street analysts. However, the arbitration with Exxon and CNOOC could push the deal's completion into 2025.
Hess CEO John Hess expressed his satisfaction with the shareholder vote, which required a majority of the 308 million outstanding shares.
"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," he said.
The merger has received strong support from Hess shareholders, despite some demands for additional compensation due to the potential delays. The arbitration with Exxon and CNOOC remains a critical step, but financial analysts believe the transaction will proceed if Chevron can resolve this dispute.