Oil & Gas Giant Chevron Agrees To Acquire Hess Corp At A Premium
Portfolio Pulse from Lekha Gupta
Chevron Corp (NYSE:CVX) has agreed to acquire Hess Corp (NYSE:HES) in an all-stock transaction valued at $53 billion, or $171 per share, representing a 10.3% premium. The total enterprise value of the deal, including debt, is $60 billion. The acquisition is expected to diversify CVX's portfolio and enhance production and free cash flow. The deal is expected to close in H1 2024, subject to HES' shareholder approval and regulatory conditions.
October 23, 2023 | 11:11 am
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NEGATIVE IMPACT
Chevron's acquisition of Hess is expected to diversify its portfolio and enhance production and free cash flow. However, the news has led to a 3% drop in CVX's share price.
The acquisition is a strategic move for Chevron to diversify its portfolio and enhance production. However, the immediate market reaction has been negative, with a 3% drop in share price, likely due to the premium paid and the debt included in the deal.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Hess Corp is being acquired by Chevron in a deal valued at $53 billion. The deal represents a 10.3% premium on HES's share price.
The acquisition deal represents a 10.3% premium on Hess's share price, which is likely to have a positive impact on the stock in the short term. However, the final impact will depend on shareholder approval and regulatory conditions.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100