Chevron Corporation (NYSE:CVX, ETR:CHV) said Friday it has closed its $53 billion acquisition of Hess Corp (NYSE:HES), cementing its entry into Guyana’s prized oil fields after an international arbitration panel rejected Exxon Mobil Corp (NYSE:XOM, ETR:XONA)'s attempt to block the deal.
The ruling by the International Chamber of Commerce (ICC) dismissed Exxon’s claim that it held a right of first refusal on Hess’s 30% stake in the Stabroek Block offshore Guyana, clearing the way for Chevron to finalize the long-contested takeover.
“We disagree with the ICC panel’s interpretation but respect the arbitration,” Exxon said in a statement. “We welcome Chevron to the venture.”
The acquisition gives Chevron access to one of the world’s largest oil discoveries in the last decade, with over 11 billion barrels of recoverable resources in Guyana, as well as significant acreage in the Bakken shale region.
Hess shareholders received 1.025 Chevron shares for each Hess share. Chevron issued roughly 301 million new shares in connection with the transaction.
The Federal Trade Commission also lifted a prior restriction on John Hess joining Chevron’s board. His appointment remains subject to board approval.
Exxon shares slipped 1.4% in early trading Friday, while Chevron was flat.