FTC Bars Hess CEO from Chevron Board in $53 Billion Merger Over OPEC Ties

The Federal Trade Commission has prohibited Hess Corp CEO John Hess from joining Chevron’s board as part of the conditions for their $53 billion merger. The FTC alleged that Hess had communicated with OPEC over the years, encouraging higher oil prices. The FTC argued that Hess’s role on Chevron’s board would increase the likelihood of Chevron aligning production with OPEC. Chevron and Hess agreed to exclude him from the board to proceed with the merger. Hess will serve as an advisor instead. The FTC’s vote follows a similar action in Exxon’s acquisition of Pioneer Natural Resources.