Chesapeake, Southwestern say deal delayed after second FTC request for information (updated)

Southwestern Energy Co

05/04/2024 11:36

(Adds details and background from paragraph 2)
       April 5 (Reuters) - Chesapeake Energy  CHK.O  and
Southwestern Energy  SWN.N  said on Friday the closing date of
their proposed $7.4 billion merger has been pushed back to the
second half of the year after receiving a second request for
information from the Federal Trade Commission.
    Chesapeake had agreed to buy smaller rival Southwestern
Energy earlier this year, a deal that will make it the largest
independent U.S. natural gas producer. The deal was earlier
expected to close by the second quarter of 2024.
    U.S. lawmakers have sought increased scrutiny by the FTC
over multi-billion dollar deals. Nearly 50 Democrats in the U.S.
Congress in March urged the regulator to probe oil and gas
company deals and expand current investigations to protect
consumers and industry competition.
    Exxon Mobil  XOM.N  and Pioneer Natural Resources  PXD.N 
received similar requests from the FTC related to their $60
billion merger, along with Chevron  CVX.N  for its buyout of
Hess Corp  HES.N .
    Chesapeake and Southwestern said they would cooperate with
the FTC in its review.



 (Reporting by Seher Dareen in Bengaluru; Editing by Shilpi
Majumdar)
 ((Seher.Dareen@thomsonreuters.com; If in India call +91 74832
70128;))