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Schumer urges FTC to hit the brakes on $53 billion Chevron-Hess merger

Published 05/12/2024, 10:30 PM
Updated 05/12/2024, 11:26 PM
© Reuters. FILE PHOTO: U.S. Senate Majority Leader Chuck Schumer (D-NY) speaks to the media at the U.S. Capitol in Washington, U.S., April 17, 2024.  REUTERS/Ken Cedeno/File Photo
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(Reuters) - U.S Senate Majority Leader Chuck Schumer on Sunday urged the Federal Trade Commission to "pump the breaks" on Chevron Corp (NYSE:CVX)'s proposed $53 billion acquisition of Hess Corp (NYSE:HES).

"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 (NYSE:XOM)'s massive Guyana discoveries.

© Reuters. FILE PHOTO: U.S. Senate Majority Leader Chuck Schumer (D-NY) speaks to the media at the U.S. Capitol in Washington, U.S., April 17, 2024.  REUTERS/Ken Cedeno/File Photo

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.

Chevron and Hess did not immediately respond to a Reuters request for comment.

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