Chevron got Hess greenlight as takeover advances

Shareholders of Hess Corp last night greenlit the oil firm’s $53 billion merger with Chevron Corp.

If concluded (and there are still significant hurdles ahead) the deal will give Chevron a substantial stake in one of the world’s largest offshore oil project, as a partner of Exxon in Guyana.

"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," Hess chief executive John Hess said.

Exxon and China’s CNOOC are disputing the deal, however, claiming they had “right of first refusal” over the project and assert they were not given the opportunity to buy the stake in the project from Hess instead.

Today, in New York, Hess stock traded at $150.43 which is now some way below the theoretical merger price of $171 per share agreed with Chevron.

The paper-deal envisages around 15% of the enlarged company being held by the  Hess shareholder base.