The Federal Trade Commission has prohibited Hess Corp CEO John Hess from joining Chevron’s board as part of the conditions for their $53 billion merger. The FTC alleged that Hess had communicated with OPEC over the years, encouraging higher oil prices. The FTC argued that Hess’s role on Chevron’s board would increase the likelihood of Chevron aligning production with OPEC. Chevron and Hess agreed to exclude him from the board to proceed with the merger. Hess will serve as an advisor instead. The FTC’s vote follows a similar action in Exxon’s acquisition of Pioneer Natural Resources.
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00:00It's Benzinga, and here's what's on the block.
00:02The Federal Trade Commission has prohibited Hess Corp CEO John Hess from joining Chevron's
00:07board as part of the conditions for their $53 billion merger.
00:11The FTC alleged that Hess had communicated with OPEC over the years, encouraging higher
00:16oil prices.
00:17The FTC argued that Hess' role on Chevron's board would increase the likelihood of Chevron
00:22aligning production with OPEC.
00:25Chevron and Hess agreed to exclude him from the board to proceed with the merger.
00:29Hess will serve as an advisor instead.
00:31The FTC's vote follows a similar action in Exxon's acquisition of Pioneer Natural Resources.
00:37For all things money, visit Benzinga.com.