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Chevron's $53 Billion Oil Deal Is Backed by Hess Shareholders

·1 min

A large oil industry deal advanced after shareholders of an oil company approved a proposed sale of the company to another company for a significant amount. Control over a prized oil asset is at stake in the deal, which still faces hurdles. The oil company is a junior partner in a drilling project in a South American country. Another company is contesting the acquisition by arguing that the oil company can’t sell itself without allowing them to buy its stake in the project. Both companies have said the interpretation of the terms of their partnership is incorrect. The dispute has been brought to an arbitration organization for resolution. Some of the oil company’s largest investors had withheld their support for the deal, but the company prevailed in convincing a majority that the deal was in their best interest. The deal is not finalized yet and is subject to the resolution of the arbitration case. The chief executive of the oil company had lobbied investors to vote for the deal. The oil company’s portfolio includes operations in various regions. Advisory firms have taken different stances on the deal. Deal-making among oil and gas producers surged last year. Investors have approved all proposed oil and gas mergers that have been put to a vote.