The Federal Trade Commission is investigating Chevron’s acquisition of Hess oil firm, the second inquiry the impartial company has opened this week of a serious oil trade merger.
Chevron and Hess mentioned in separate filings that the FTC is in search of further info and documentary supplies associated to Chevron’s proposed $53 billion purchase of Hess, introduced in October.
The statements Friday comply with an announcement earlier this week that the FTC is reviewing ExxonMobil’s proposed $60 billion acquisition of Pioneer Natural Resources. Such requests for info are steps the company takes when reviewing whether or not a merger may very well be anticompetitive beneath U.S. legislation. If accomplished, the Exxon and Chevron offers could be among the many largest mergers within the vitality trade in 20 years.
The inquiries come after Senate Majority Chief Chuck Schumer and 22 different Democratic senators urged the FTC to investigate the 2 offers. Schumer mentioned Friday the Chevron-Hess merger would result in “higher prices at the pump for families even while Big Oil profits keep going up and up.”
The FTC, which shares antitrust authority with the Justice Division, can sue in court docket to dam a merger or decline to take motion, successfully clearing the deal.
A spokesperson for the fee declined to remark Friday.
Chevron, Exxon and different oil firms have introduced big earnings from sturdy vitality costs and demand since Russia’s 2022 invasion of Ukraine. Exxon reported $9.1 billion in profits in the quarter that ended Sept. 30, whereas Chevron reported $6.5 billion in earnings.
