FTC to Prohibit Former Pioneer CEO from Joining Exxon Board as Part of Deal – Wall Street Journal

Exxon Mobil Corp is on the brink of finalizing its $60 billion acquisition of Pioneer Natural Resources, but not without some controversy. According to the Wall Street Journal, the Federal Trade Commission (FTC) has raised concerns about former Pioneer CEO Scott Sheffield’s alleged collusive activity with OPEC members.

The FTC is expected to allege that Sheffield engaged in discussions with OPEC representatives regarding market dynamics, including pricing and production levels, potentially influencing the price of oil. As a result, the agreement with antitrust enforcers will prevent Sheffield from joining Exxon’s board once the acquisition is complete.

Both Pioneer and the FTC have declined to comment on the matter, but Exxon has stated that they are cooperating with the FTC’s review process. Exxon CEO Darren Woods expressed confidence that there are no antitrust issues, citing the extensive amount of information provided to the agency.

Despite the potential roadblock, analysts believe that the acquisition is likely to proceed smoothly, with few obstacles remaining to a second-quarter close. The FTC’s increased scrutiny of oil and gas deals has been evident in recent months, with several companies facing additional requests for information related to their acquisitions of rivals.

As the FTC’s 30-day review period nears its end, the fate of the Exxon-Pioneer deal hangs in the balance. Stay tuned for updates on this developing story.