Chevron's $53B Hess purchase; Western Digital's doomed merger: 5 big deal reports

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Investing.com — Here is your Pro Recap of 5 head-turning deal dispatches you may have missed last week: Chevron to buy Hess for $53 billion, Vista Equity Partners to pick up EngageSmart, Roche to buy Telavant Holdings from Roivant and Pfizer , Western Digital drops on 'scrapped' merger, and Forward Air seeks to terminate disastrous Omni merger.

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Chevron (NYSE:CVX) last week said it struck an all-stock deal to buy Hess (NYSE:HES) for $53 billion, or $171 per share, based on Chevron's Oct. 20 closing price. As per the terms of the deal, each Hess shareholder will get 1.0250 Chevron shares for their Hess share, bringing the combined enterprise's value to $60B, including debt.

Chevron said the move aims to bolster and diversify its portfolio and drive up its production growth for the next decade, highlighting the Stabroek block in Guyana, known for its strong cash margins and low carbon intensity.

The transaction was unanimously approved by both companies' boards and is expected to be completed in the first half of 2024.

Chevron shares lost 13.5% to $144.35 for the week. Hess was off 12.1% to $143.29.

Western Digital's (NASDAQ:WDC) stock lost as much as 15.6% intraday Thursday, and closed down more than 9%, after Nikkei Asia revealed that discussions concerning the company’s proposed merger with Kioxia had been «scrapped» after it failed to receive approval from large shareholders SK Hynix and Bain Capital.

This report surfaced shortly after SK Hynix said it opposes a merger between Kioxia and Western Digital, arguing that it undervalues its Kioxia investment's value.

Wolfe Research noted, «It doesn't appear that a deal can be struck