Chevron acquires Hess Oil to compete with Exxon.
The news of mega deals in the global energy markets just keeps coming. It was just announced on October 23, 2023, that the two largest US oil and gas producers Chevron and Hess will merge in a deal worth $53 billion.
You can watch CNBC’s full interview with the CEOs of Chevron and Hess about the merger deal at the link above. Interestingly, Hess CEO John Hess begins the interview with a personal story about his father driving a fuel oil delivery truck during the Great Depression in the U.S., but immediately turns the conversation to the company’s shareholders:
It’s also interesting to note that the moment Hess started to talk about the company’s stance on the energy transition, a CNBC analyst/interviewer practically interrupted him to ask a more detailed question about the company’s strategy.
That speaks volumes about how investors and journalists feel about oil and gas companies’ stance on the energy transition these days. There’s not much talk about it right now, especially in the context of U.S. oil and gas producers.
See CNBC’s piece below for all the details on the acquisition:
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Saudi PIF won a bid from Hyundai Motors to set up a car plant in Saudi Arabia.
During the Saudi-Korean Business Forum held on October 22, 2023, a x2 joint venture deal was announced between Saudi Arabia’s Public Investment Forum (PIF) and South Korean automotive leader Hyundai Motors.
The deal allows Hyundai Motors to become an important part of PIF Saudi Arabia’s strategy to become an electric vehicle (EV) manufacturing center for global export markets. As part of the joint venture, Saudi Arabia will take a 70% controlling stake and Hyundai will own the remaining 30%.
Specifically, the deal is expected to achieve a production volume of 50,000 vehicles per year, not only in the electric vehicle market, but also in traditional internal combustion engine vehicles.
Yazid A. Al-Humid, deputy managing director, head of investments in the Middle East and North Africa of PIF. Al-Humid spoke about the strategic implications of this partnership:
The world’s largest automakers continue to invest in the future of electric vehicles. But before we discuss the latest investments, we should turn our attention to a key event in the United Auto Workers (UAW) debate in the United States, where Bill Ford, grandson of the legendary Henry Ford, now executive chairman of Ford, spoke at a high-profile automotive industry event at the Rouge Visitor Center in Dearborn, Michigan, on October 16, 2023.
He outlined Ford’s position on the stalled progress in negotiations between Ford and the UAW. His remarks resonated throughout the industry:
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