Home » US business news » FTC probes Exxon’s $60 billion Pioneer deal
FTC probes Exxon’s $60 billion Pioneer deal
https://www.whatjobs.com/news/usa/us-business-news/ftc-probes-exxons-60-billion-pioneer-deal
By Nithya Bose in US business news, posted December 6, 2023
The Federal Trade Commission is investigating Exxon Mobil's proposed $59.5 billion acquisition of Pioneer Natural Resources.
The takeover would be the largest oil-and-gas deal in the past two decades.
However, the US antitrust enforcers are looking into potential anticompetitive effects, leading to a detailed transaction review.
Read More: Meta Files Lawsuit Against FTC Over 2020 Child Privacy Settlement
Exxon's plan means it would become the leading oil producer in the highly active Permian Basin, spanning West Texas and New Mexico.
The FTC has requested additional information from both companies, a customary step when assessing mergers for potential antitrust implications under US law.
Typically, such investigations take approximately 10 months to reach completion, according to data compiled by law firm Dechert.
The proposed acquisition represents Exxon's most substantial deal since its $75 billion merger with Mobil in the late 1990s.
Looking to boost your online brand? Create your FREE business profile at WhatBiz? here.
Exxon spokeswoman, Michelle Gray, said: “We’re working to provide requested information.
“From an anti-competitive perspective, it’s critical to remember the combined companies represent approximately 5% of the total U.S. oil and gas production.”
In collaboration with the Justice Department, the FTC holds the authority to sue in court to block a merger or clear the deal by choosing not to take action.
Need Career Advice? Get employment skills advice at all levels of your career
In certain instances, companies may abandon deals upon learning of an impending antitrust lawsuit.
This development follows a recent trend in the industry, with other major oil companies pursuing acquisitions.
Chevron's $53 billion all-stock deal for Hess and Occidental Petroleum's ongoing talks to acquire CrownRock for over $10 billion underscore a broader consolidation trend within the sector.
Follow us on YouTube, X, LinkedIn, and Facebook.
