The US antitrust regulator will allow Chevron Corp. to proceed with its $53 billion acquisition of Hess Corp. on the condition Chief Executive Officer John Hess is barred from the supermajor’s board, alleging he improperly communicated with OPEC.

The FTC on Monday alleged that John Hess encouraged OPEC representatives to take action that supports higher oil prices. Hess Corp. and Chevron have agreed that they will not appoint Hess to the board in order to facilitate the completion of the merger.

The Federal Trade Commission said the oil giant could acquire the smaller company as long as the chief executive of Hess did not join its board.

NEW YORK (Reuters) -The U.S. Federal Trade Commission allowed Chevron's $53 billion purchase of Hess Corp on Monday, in an order that barred Hess CEO John Hess from Chevron's board. The FTC's order leaves Exxon Mobil's challenge to the deal, which is expected to stretch deep into next year, as its final hurdle.

John Hess would be prevented from Chevron’s board as part of deal for antitrust approval of a Hess-Chevron merger.

CVX's merger with Hess clears FTC review but John Hess steps into an advisory role after the FTC blocks his board appointment over OPEC-related concerns.

Key Takeaways Chevron's $53 billion acquisition of Hess cleared a regulatory hurdle Monday as the Federal Trade Commission (FTC) completed its review of the deal.However, the FTC barred Hess CEO John Hess from joining Chevron's board.

As a condition of the approval, the Federal Trade Commission (FTC) has stipulated that Hess CEO John B Hess will not join Chevron's board of directors.