(NYSE: CVX) is tanking up, announcing plans to buy Hess (NYSE: HES) in an all-stock deal valued at about $53 billion. Investors get nervous about the risks that come with big-ticket mergers and acquisitions (M), and they're sending Chevron shares down as much as 3% on Monday following the news.

Oil prices are on the rise, and relief from renewables will take time to make a dent. Major oil producers are reacting by expanding their reserves. Earlier this month, Exxon agreed to acquire Pioneer Natural Resources for $64.5 billion, and on Monday Chevron followed with its own major acquisition.

Terms of today's deal call for Chevron to pay 1.025 shares for every Hess share, and to assume about $7 billion in debt. In return, Chevron will gain access to new oil reserves discovered in Guyana, as well as shale assets in North Dakota.

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Source Fool.com