US FTC signals Exxon deal approval, bars executive from board seat (updated)
02/05/2024 13:59
(Updates with comments from FTC, background)
WASHINGTON/HOUSTON, May 1 (Reuters) - The Federal Trade
Commission signaled on Thursday it was prepared to green light
Exxon Mobil XOM.N 's $60 billion purchase of Pioneer Natural
Resources PXD.N on the condition Pioneer's former CEO will not
be allowed to join Exxon's board.
The FTC's consent order prevents former Pioneer Natural
Resources PXD.N CEO Scott Sheffield from taking an offered
seat on Exxon Mobil's board of directors to resolve antitrust
concerns about Exxon's bid to buy the top shale oil producer.
“Mr. Sheffield’s past conduct makes it crystal clear that he
should be nowhere near Exxon’s boardroom," said Kyle Mach,
Deputy Director of the FTC’s Bureau of Competition.
The shale executive, widely viewed as the dean of U.S.
shale because of his long role in the business and blunt
comments on the industry, had used his position "to align oil
production across the Permian Basin in West Texas and New Mexico
with OPEC+," the FTC claimed.
(Reporting by Sabrina Valle in Houston, Susan Heavey and Doina
Chiacu in Washington; Editing by Chris Sanders)
((eric.beech@thomsonreuters.com; 202-898-8322; Reuters
Messaging: eric.beech.reuters.com@reuters.net))