Prediction: Chevron Will Prevail Over ExxonMobil and Close This Needle-Moving Acquisition
Chevron (NYSE: CVX) made a very bold move last fall, agreeing to buy (NYSE: HES) in a nearly $60 billion deal. The needle-moving acquisition would enhance the company's portfolio and extend its growth profile. That's why it is working hard to close the transaction despite several delays.
ExxonMobil (NYSE: XOM) is causing the biggest delay. The big oil giant launched a dispute over contractual language related to the deal. As a result, the companies are seeking arbitration to resolve the matter. I predict that Chevron will emerge victorious and eventually close its purchase of Hess. Here's why.
Chevron unveiled its merger agreement with Hess last October, less than two weeks after Exxon revealed its more than $60 billion megamerger with Pioneer Natural Resources. While the timing might suggest the acquisition was in response to Exxon's merger, Chevron wasn't doing a deal just to keep up with its rival. Hess is a very strategic transaction for the oil giant.
Source Fool.com
Hess Corp. Stock
Our community is currently low on Hess Corp. with 11 Buy predictions and 14 Sell predictions.
On the other hand, the target price of 172 € is above the current price of 118.26 € for Hess Corp., so the potential is actually 45.44%.
