Daily Brief - 29 May 2024

Chevron moves closer to $53 billion Hess takeover despite Exxon challenge

Hess shareholders have approved Chevron's $53 billion takeover, pushing the deal forward despite an ongoing dispute with ExxonMobil. Exxon claims it has rights to buy Hess's stake in a valuable oil find in Guyana, leading to an arbitration process.

The acquisition is also under review by the Federal Trade Commission. Despite these challenges, Chevron is optimistic about completing the merger by year-end.

Guyana's president supports Chevron's involvement, while Exxon seeks to extend the arbitration into 2025. Hess's CEO expressed satisfaction with shareholder support.

ConocoPhillips nears $15 billion acquisition of Marathon Oil

ConocoPhillips is close to buying Marathon Oil in an all-stock deal valued at just over $15 billion. The acquisition would mark another significant consolidation in the US energy sector, following similar large deals by ExxonMobil and Chevron.

Despite the advanced talks, there's still a chance negotiations could fail or a rival bidder could emerge. ConocoPhillips, with a market cap of $139 billion, has been competing with Devon Energy for Marathon, which owns valuable assets across North America and Equatorial Guinea.

Conoco's CEO, Ryan Lance, advocates for industry consolidation to enhance scale and diversity.

Key clients leave PwC China during Evergrande audit fallout

PwC China is losing high-profile clients as it faces potential penalties related to its audit of troubled property developer Evergrande.

China Merchants Bank plans to switch its auditor to EY from Deloitte for its 2024 audits, reversing its previous decision to hire PwC China. Similarly, China Railway Group, a significant state-owned construction company, has chosen Deloitte over PwC for its 2024 audits.

These moves reflect growing concerns about PwC's uncertain future in China due to leadership changes and impending regulatory penalties.