The FTC paves the way, conditionally, for the acquisition of Pioneer by ExxonMobil

new York: The American competition authority, the FTC, opened the way, Thursday, for the takeover of the shale oil giant Pioneer Natural Resources by its competitor ExxonMobil, on the condition that the former boss of the first does not become a director of the second .

After this regulatory green light, the operation will be finalized on Friday, an ExxonMobil spokesperson told AFP.

The two companies announced their union in early October, with ExxonMobil saying it was ready to pay $64.5 billion to take control of Pioneer.

The FTC had, on several occasions, requested information and documents relating to the operation.

On Thursday, it announced in a statement that ExxonMobil had agreed to block the appointment of former Pioneer CEO Scott Sheffield to its board of directors.

The FTC accused this industry veteran of colluding with representatives of the Organization of the Petroleum Exporting Countries (OPEC) and countries party to the OPEC+ agreement, which expanded the cartel’s circle.

The parties would have agreed to reduce the production of oil and natural gas in order to artificially support prices, according to the American Competition Authority.

However, Scott Sheffield has never been prosecuted for these alleged facts.

“Mr. Sheffield’s past behavior clearly demonstrates that he should not, under any circumstances, join the ExxonMobil board.“, said the deputy director of the competition bureau, Kyle Mach, quoted in the press release.

Scott Sheffield handed over the reins of Pioneer at the end of 2023 after 27 years at the helm of the group, but remained a director of the Irving (Texas) group.

“We are surprised and disagree with the FTC’s accusations“, Pioneer said in a separate statement, while specifying that neither the oil company nor its former boss would oppose the finalization of the takeover by ExxonMobil.

Scott Sheffield and Pioneer believe that the FTC’s position “reflects a fundamental misunderstanding of the U.S. and global oil markets and misunderstands the nature and intent of Mr. Sheffield’s actions“.