FTC Bars John Hess from Chevron Board as Part of $53 Billion Deal

By Sabela Ojea

The Federal Trade Commission has approved a proposed consent order that would ban Hess's Chief Executive John Hess to serve as a Chevron board director as part of their $53 billion deal.

According to the complaint, the appointment of Hess to Chevron's board would heighten the risk of harm to competition, as he allegedly encouraged his Organization of Petroleum Exporting Countries competitors to stabilize production and draw down inventories, which can lead to higher prices, the federal agency said Monday.

The FTC's proposed consent order would also prohibit Hess from serving in an advisory or consulting capacity to, or as a representative of, Chevron or its board.

"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," said Henry Liu, director of the FTC's bureau of competition.

The Commission voted 3-2 to accept the consent agreement.

"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," Liu added.

The merger agreement between Chevron and Hess requires Chevron to take all actions necessary to appoint Hess's CEO to its board of directors.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

September 30, 2024 11:44 ET (15:44 GMT)

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