Investing

Exxon Mobil reaches agreement with FTC, poised to close $60 billion Pioneer deal

In this article

A view of the Exxon Mobil refinery in Baytown, Texas.
Jessica Rinaldi | Reuters

The Federal Trade Commission will wave through Exxon Mobil‘s roughly $60 billion acquisition of Pioneer Natural Resources after reaching an agreement with the energy giant, a source familiar with the matter told CNBC.

The FTC will not block the deal now that the regulator and Exxon have reached a consent agreement, the source said. The agreement will bar Pioneer’s former CEO Scott Sheffield from joining the Exxon board.

The push to remove Sheffield was due to concerns about his prior discussions with OPEC, according to the source.

Exxon and the FTC both declined to comment. The agreement was first reported by Bloomberg News.

Exxon first announced the deal for Pioneer in October, in an all-stock transaction valued at $59.5 billion. Exxon said the acquisition would more than double its production in the Permian Basin.

“Pioneer is a clear leader in the Permian with a unique asset base and people with deep industry knowledge. The combined capabilities of our two companies will provide long-term value creation well in excess of what either company is capable of doing on a standalone basis,” Exxon chairman and CEO Darren Woods said in a press release at the time.

Shares of Exxon and Pioneer were both little changed in extended trading Wednesday.

— CNBC’s Pippa Stevens and Mary Catherine Wellons contributed reporting.

Products You May Like

Articles You May Like

How IRMAA Can Increase Your Medicare Premiums In Retirement
Biden administration to forgive $7.7 billion in student debt for more than 160,000 borrowers
Elizabeth Warren wants more student loan borrowers to know bankruptcy is easier now
Biden, Trump rematch: Here’s how the presidential election may disrupt the stock market
Eli Lilly’s big GLP-1 investment — plus, what we want from 4 portfolio stock earnings

Leave a Reply

Your email address will not be published. Required fields are marked *