US energy giant Chevron to acquire Hess

US energy giant Chevron is buying rival Hess Corp in an all-stock deal valued at $53 billion (€49.99 billion), both companies announced on Monday.

Chevron said the acquisition would add to it a major oil field in Guyana, as well as shale properties in the Bakken Formation in North Dakota.

"This combination positions Chevron to strengthen our long-term performance and further enhance our advantaged portfolio by adding world-class assets,” said Chevron Chairman and CEO Mike Wirth.

The deal, due to close in the first half of next year, is financed by stock. Hess shareholders will receive 1.0250 shares of Chevron for each Hess share. Chevron valued the deal at $60 billion, including debt.

The deal is still pending the approval of Hess shareholders.
Surging oil prices

The deal marks a further consolidation of the oil industry, as cash-rich oil giants are boosting investments in fossil fuels on the back of relatively high oil prices.

It comes barely two weeks after another mega-acquisition by oil giant ExxonMobil, which announced it is buying Pioneer Natural resources for roughly $60 billion.

Crude oil prices are up 9% this year, selling for around $90 per barrel for some two months. The historically high price is boosting the profits of oil majors.

Last year, Chevron posted a record profit of $35.5 billion, while Hess said its net profit stood at nearly $2.2 billion, reports DW.