FTC to bar Pioneer ex-CEO from Exxon board as condition to deal -WSJ

[BumRushDaShow]

Source: Reuters

May 1, 2024 7:02 PM EDT Updated 3 hours ago


HOUSTON, May 1 (Reuters) - Exxon Mobil Corp (XOM.N) is set to close its $60 billion acquisition of Pioneer Natural Resources (PXD.N) after an agreement with antitrust enforcers that will keep former Pioneer CEO Scott Sheffield off its board, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

The Federal Trade Commission (FTC) will allege that Sheffield engaged in collusive activity with members of the Organization of the Petroleum Exporting Countries (OPEC) that could have raised the price of oil, the newspaper reported.

The FTC will claim that Sheffield sent hundreds of messages to OPEC representatives that included discussions of market dynamics, including pricing and production levels, the Journal reported.

Sheffield retired as Pioneer's CEO on Dec. 31, but continued to serve on its board and was due to take a seat on Exxon's board when the acquisition deal closed. Pioneer and the FTC both declined to comment. "We continue to work constructively with the FTC as they conduct a very thorough review," an Exxon spokesperson said on Wednesday.

Read more: https://www.reuters.com/markets/deals/us-ftc-set-rule-60-bln-exxon-pioneer-deal-bloomberg-reports-2024-05-01/

[TexasTowelie]

1. I used to work in the same building with Pioneer Natural Resources from 2000 to 2007 when I lived in Irving.

The company grew significantly during that stretch and the insurance company where I worked would sublet space to Pioneer since we were in voluntary liquidation while Pioneer was growing quickly.

I could see where collusion could occur with the former CEO. At the time, the headquarters for Exxon was about a mile away. Exxon moved their corporate headquarters to Houston a few years ago.