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
Currently there is a rather negative sentiment for Hess Corp. with 10 Buy predictions and 14 Sell predictions..
However, we have a potential of 38.58% for Hess Corp. as the target price of 173 € is above the current price of 124.84 €.
