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Investing.com -- Chevron Corp. (NYSE:CVX) says the closing of its $53 billion agreement to buy Hess Corp (NYSE:HES). will reduce uncertainty for other deals in the oil industry.
The International Chamber of Commerce ruled Friday in favor of Hess and Chevron, eliminating concerns that contracts used for partnerships like the one for Guyana’s giant oil field could be used to "peel assets out of a corporate level transaction," according to Chevron Chief Executive Officer Mike Wirth in a Bloomberg TV interview.
Wirth emphasized that this ruling is significant for an industry where deal making plays a vital role in success.
"We have companies that come into this industry and people who build them, and the way they get rewarded is selling the company," Wirth said following the completion of this major acquisition. "It is in the nature of our industry that transactions are part and parcel with how it functions."