US clears ExxonMobil deal, bars Pioneer ex-chief from board

Scott Sheffield, shown present connected a February 2022 sheet with the CEO of Saudi Aramco, volition beryllium barred from the ExxonMobil committee nether a projected consent bid by the Federal Trade Commission. Photo: Fayez Nureldine / AFP/File
Source: AFP

US antitrust authorities cleared ExxonMobil's acquisition of Pioneer Natural Resources nether the information that the shale producer's erstwhile CEO beryllium barred from the company's board, regulators announced Thursday.

A projected consent bid barred longtime Pioneer CEO Scott Sheffield from the ExxonMobil committee of directors, citing his "collusive" enactment with crude exporters from the OPEC+ radical of countries, a Federal Trade Commission (FTC) property merchandise said.

The FTC, which has ramped up enactment against firm mergers successful caller years nether seat Lina Khan, said Sheffield's installation connected the committee of ExxonMobil posed a hazard to US consumers.

"Mr. Sheffield's past behaviour makes it crystal wide that helium should beryllium obscurity adjacent Exxon's boardroom," said Kyle Mach, lawman manager of the FTC's committee of competition.

"American consumers shouldn't wage unfair prices astatine the pump simply to pad a firm executive's pocketbook."

In October, ExxonMobil announced the acquisition of the chap Texas-based Pioneer for astir $60 cardinal successful a large stake connected the Permian Basin, a cardinal US shale region.

The institution volition adjacent the merger connected May 3, an ExxonMobil spokeswoman said Thursday, aft officials past week expressed assurance the woody would proceed successful the 2nd quarter.

The FTC pointed to "hundreds of substance messages" from Sheffield exchanged with OPEC representatives and others progressive successful crude lipid marketplace dynamics successful an effort to coordinate argumentation and support higher prices.

"If Texas leads the way, possibly we can get OPEC to chopped production. Maybe Saudi and Russia volition follow. That was our plan," Sheffield said successful 1 connection cited by the FTC. "I was utilizing the tactics of OPEC+ to get a bigger OPEC+ done."

Pioneer said that portion the FTC's ailment reflects a "fundamental misunderstanding of the US and planetary lipid markets and misreads the quality and intent of Mr. Sheffield's actions," neither it nor Sheffield would instrumentality steps to forestall the woody from closing.

Sheffield was motivated by strengthening the presumption of home energy producers to heighten US vigor security, Pioneer said.

"During Mr. Sheffield's career, it was neither the intent nor an effect of Mr. Sheffield's communications to circumvent the laws and principles protecting marketplace competition," Pioneer said.

It pointed to Sheffield's acquisition of surviving done six industry downturns successful which "OPEC and OPEC+ person oversupplied the market, causing important turmoil for Us independents, including Pioneer."

ExxonMobil said it learned of the allegations from the FTC.

"They are wholly inconsistent with however we bash business," an ExxonMobil spokeswoman said, adding that aft a lengthy review, "the Commission raised nary concerns with our concern practices."

The FTC has acceptable a 30-day nationalist remark play aft which it volition determine whether to modify, retreat oregon finalize the projected order, an bureau spokeswoman said.

Source: AFP