Chuck Schumer Calls on FTC to Halt Chevron-Hess $53 Billion Merger

By Leira Aquino

May 13, 2024 04:17 AM EDT

Chuck Schumer Calls on FTC to Halt Chevron-Hess $53 Billion Merger
Senate Majority Leader Chuck Schumer has strengthened his position against Chevron Corp.'s bid to acquire Hess Corp., urging the Federal Trade Commission (FTC) to block the $53 billion deal.
(Photo : Andrew Harnik/Getty Images)

Senate Majority Leader Chuck Schumer has escalated his stance against Chevron Corp.'s proposed acquisition of Hess Corp., calling on the Federal Trade Commission (FTC) to halt the proposed $53 billion deal.

Schumer's statement Monday on social media platform X, formerly known as Twitter, marks his strongest language yet against the merger since urging the FTC to investigate it last year.

@twitter|https://twitter.com/SenSchumer/status/1789749253956399528?ref_src=twsrc%5Etfw@

Concerns Over Market Consolidation

Schumer emphasized concerns about the potential impact on gas prices if the merger proceeds amidst a broader context of consolidation within the US oil industry.

This comes after major acquisitions such as Exxon Mobil Corp.'s $60 billion purchase of Pioneer Natural Resources Co, as reported by Bloomberg.

Schumer's call to action is rooted in his belief that such mergers could give oil giants undue influence over gas prices, raising gas prices and ultimately affecting consumers.

His message resonates with previous letters sent by him and 22 other Democratic senators to the FTC, expressing apprehension about multi-billion dollar acquisitions by oil and gas companies, Reuters reported.

READ NEXT: FTC Accuses Amazon's Jeff Bezos of Destroying Evidence Amid Antitrust Probe

Implications of Chevron-Hess Deal in Guyana Oil Market

The proposed deal between Chevron and Hess is particularly significant, granting Chevron a substantial presence in Guyana, a burgeoning oil market.

This strategic move aligns with Chevron's aim to expand its US oil footprint and tap into Exxon Mobil's substantial oil discoveries in Guyana.

The FTC's role in this matter is crucial as it continues to review the merger. The outcome of this regulatory scrutiny will have far-reaching implications not only for the involved companies but also for the broader oil and gas market dynamics.

READ MORE: Potential Gas Price Change Anticipated Following Chevron and Exxon Mobil Q1 Profits Dip

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics