The U.S. Senate Majority Leader, Chuck Schumer (D-N.Y.), has called on the Federal Trade Commission (FTC) to reevaluate the proposed $53 billion merger between Chevron Corp (NYSE:CVX) and Hess Corp (NYSE:HES).
What Happened: Schumer voiced his concerns over the merger on social media on Monday. He cautioned that the merger could empower oil majors to raise gas prices.
"I'm sounding the alarm against yet another proposed Big Oil merger—a $53B deal between Chevron and Hess It would give Big Oil more fuel to raise gas prices," he said.
"Trump might be hosting dinners for Big Oil execs, but the FTC should side with consumers and pump the breaks on this deal."
I'm sounding the alarm against yet another proposed Big Oil merger—a $53B deal between Chevron and Hess
It would give Big Oil more fuel to raise gas prices
Trump might be hosting dinners for Big Oil execs, but the FTC should side with consumers and pump the breaks on this deal
— Chuck Schumer (@SenSchumer) May 12, 2024
At the time of publishing, Chevron and Hess are yet to respond to inquiries sent by Benzinga.
Why It Matters: In October, Chevron agreed to buy Hess for $53 billion or $171 per share in an all-stock transaction, representing a premium of 10.3% on a 20-day average based on closing prices on October 20, 2023. The total enterprise value of the deal, including debt, is $60 billion.
Schumer has consistently advocated for increased scrutiny of large oil mergers. Last November, as per Reuters, he and 22 other Democratic senators wrote to the FTC, warning that large-scale acquisitions by oil and gas giants like Exxon and Chevron could result in higher consumer prices.
In December, the FTC sought additional information and documentary material from Chevron and Hess in connection with the merger, according to another Benzinga report. The issuance of the second request extended the waiting period imposed by the HSR act until 30 days after Chevron and Hess have substantially complied with the Second Request.
Price Action: On Friday, Chevron's stock closed at $165.80, and Hess's stock closed at $160.35, according to Benzinga Pro. Both companies had reported earnings surprises in their first-quarter earnings of 2024, with Chevron reporting an EPS of $2.93 against an estimate of $2.68, and Hess reporting an EPS of $3.16 against an estimate of $1.69.
美國參議院多數黨領袖查克·舒默（D-N.Y.）呼籲聯邦貿易委員會（FTC）重新評估雪佛龍公司（紐約證券交易所代碼：CVX）與赫斯公司（紐約證券交易所代碼：HES）之間530億美元的擬議合併。
發生了什麼：舒默週一在社交媒體上表達了對合並的擔憂。他警告說，此次合併可能使石油巨頭能夠提高天然氣價格。
他說：“我對另一項擬議的大石油公司合併敲響警鐘——雪佛龍與赫斯之間達成的530億美元協議。這將爲石油巨頭提供更多燃料來提高天然氣價格。”
“特朗普可能會爲石油巨頭舉辦晚宴，但聯邦貿易委員會應該站在消費者一邊，加大這筆交易的中斷力度。”
我正在爲又一次擬議的石油巨頭合併敲響警鐘——雪佛龍和赫斯之間的530億美元協議
這將爲石油巨頭提供更多燃料來提高天然氣價格
特朗普可能會爲石油巨頭高管舉辦晚宴，但聯邦貿易委員會應該站在消費者一邊，爲這筆交易加大休息時間
— 查克·舒默 (@SenSchumer) 2024 年 5 月 12 日
在發佈之時，雪佛龍和赫斯尚未回應本辛加發出的詢問。
爲何重要：10月，雪佛龍同意以530億美元或每股171美元的價格收購赫斯，根據2023年10月20日的收盤價，按20天平均價格計算，溢價爲10.3％。該交易的企業總價值，包括債務，爲600億美元。
舒默一直主張加強對大型石油合併的審查。據路透社報道，去年11月，他和其他22名民主黨參議員寫信給聯邦貿易委員會，警告說，埃克森美孚和雪佛龍等石油和天然氣巨頭的大規模收購可能導致消費者價格上漲。
根據本辛加的另一份報告，聯邦貿易委員會在12月要求雪佛龍和赫斯提供與合併有關的更多信息和文件材料。第二份申請的發佈將高鐵法案規定的等待期延長至雪佛龍和赫斯基本遵守第二項請求後的30天。
價格走勢：根據Benzinga Pro的數據，週五，雪佛龍的股票收於165.80美元，赫斯的股票收於160.35美元。兩家公司在2024年第一季度的收益中都公佈了意想不到的收益，雪佛龍公佈的每股收益爲2.93美元，而估計爲2.68美元；赫斯公佈的每股收益爲3.16美元，而估計爲1.69美元。
