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Chevron (NYSE:CVX) Chairman and CEO Mike Wirth would not count on antitrust points to derail the $53 billion all-stock acquisition of Hess (NYSE:HES).
“That is an upstream transaction,” Wirth stated earlier Monday in an interview with CNBC. “There is not any refining. There is not any advertising and marketing. The oil markets are large. Now we have a 2% market share within the world oil markets. Our portfolios have actually little or no overlap in any respect, so we do not actually consider there are any competitors points right here.”
Hess (HES) shares have been little modified on information of the mega transaction, whereas Chevron (CVX) fell 2.6%.
The large prize for Chevron (CVX) within the deal is Hess’ (HES) 30% stake offshore Guyana, the place Hess and its companions Exxon and China’s Cnooc have cranked up oil manufacturing to 400K bbl/day in a couple of years with plans to pump 1.2M bbl/day by 2027, making it one of many world’s fastest-ever oil developments.