The FCC has approved the Chevron-Hess merger, but with a catch. The FTC has determined that John Hess will NOT be permitted to serve on the board due to conflicting interests. The merger was approved by a 3-2 vote.
The board issued a statement on their ruling regarding Hess, stating “Mr. Hess’s communications with competitors about global oil output and other dimensions of crude oil market competition disqualify him from serving on Chevron’s Board of Directors. FTC will use all its available enforcement tools to protect competition in this vital market and help ensure American consumers benefit from lower prices at the pump.”
US FTC approves Chevron-Hess merger — with a catch – Upstream Online
Source Link
Excerpt:
Chevron’s proposed $53 billion merger with Hess has been cleared by the US Federal Trade Commission (FTC), though the regulatory agency is blocking Hess chief executive John Hess from joining the Chevron board over conversations it alleges he had with Opec officials about influencing crude oil prices abroad.
The FTC claimed Hess “communicated publicly and privately” with past and current secretaries general of Opec as well as Saudi Arabia officials, encouraging the oil producing nations to “stabilise production and draw down inventories” in an effort to raise crude prices.
A seat on Chevron’s board would give John Hess “a much larger platform to amplify his supportive messaging to Opec and others about Opec’s market stability goals, increasing the likelihood that Chevron could align its production with Opec’s output decisions to maintain higher oil prices,” an FTC statement said.
The FTC approved the order on a 3-2 vote.
“Mr. Hess’s communications with competitors about global oil output and other dimensions of crude oil market competition disqualify him from serving on Chevron’s Board of Directors,” Henry Liu, director of the FTC’s Bureau of Competition, said in a statement. “The FTC will use all its available enforcement tools to protect competition in this vital market and help ensure American consumers benefit from lower prices at the pump.”
About The Author
