The Federal Trade Commission will approve Exxon Mobil’s approximately $60 billion acquisition of Pioneer Natural Resources after reaching an agreement with the energy giant, according to a source familiar with the matter.
The acquisition will not be halted per the consent agreement reached between the FTC and Exxon. The former Pioneer chief executive officer, Scott Sheffield, will not be permitted to join the board of directors of Exxon. Concerns regarding Sheffield’s previous interactions with OPEC led to the decision to exclude him from the debate.
Exxon and the Federal Trade Commission (FTC) have refrained from commenting on the arrangement.
Exxon announced in October that it would acquire Pioneer and the transaction was estimated to be worth $59.5 billion. Exxon can dramatically boost its production in the Permian Basin by entering into this agreement.
According to Darren Woods, Chairman, and Chief Executive Officer of Exxon, quoted in a press release, “The combined capabilities of our two organizations will offer long-term wealth creation well over what either firm is capable of doing on a standalone basis.” Woods expressed his confidence in the merger.
In the extended trading session on Wednesday, the shares of Exxon and Pioneer exhibited the least movement after the news.
