Schumer Urges FTC to Hit the Brakes on $53 Billion Chevron-Hess Merger

[BumRushDaShow]

Source: US News and World Report/Reuters

May 12, 2024, at 10:30 p.m.


(Reuters) - U.S Senate Majority Leader Chuck Schumer on Sunday urged the Federal Trade Commission to "pump the breaks" on Chevron Corp's proposed $53 billion acquisition of Hess Corp.

"The FTC should side with consumers and pump the breaks on this deal," Schumer said in a post on social media platform X, adding that the deal would give oil majors more leverage to raise gas prices.

In October last year, Chevron agreed to buy Hess for $53 billion in stock to gain a bigger U.S. oil footprint and a stake in rival Exxon Mobil's massive Guyana discoveries.

Schumer has previously also called for greater scrutiny of mega oil mergers as he along with 22 other Democratic senators wrote to the FTC in November last year, saying multi-billion dollar acquisitions by oil and gas giants Exxon and Chevron could lead to higher prices for consumers.

Read more: https://www.usnews.com/news/top-news/articles/2024-05-12/schumer-urges-ftc-to-hit-the-brakes-on-53-billion-chevron-hess-merger

[jmowreader]

1. Could, but probably won't

First: this merger should not happen because that industry needs more competition, not less.

However, as long as there is competition gas prices aren’t going to just go through the roof for no reason. Consumers will switch gas brands to save two cents per gallon, so if ChevronHess decides to raise its prices too much people will stop buying gas there. They know this happens so the consumer will keep them in line.