
The Federal Trade Commission (FTC) has given its approval to two consent orders aimed at resolving antitrust concerns related to major oil industry mergers, according to The Wall Street Journal. These agreements focus on Exxon Mobil’s $60 billion acquisition of Pioneer Natural Resources and Chevron’s $53 billion merger with Hess Corporation.
Under the FTC’s order, Exxon Mobil is prohibited from appointing former Pioneer Chief Executive Officer Scott Sheffield to its board of directors. Sheffield is also barred from serving in any advisory capacity to Exxon’s board or management team, per The Wall Street Journal. Similarly, the order for Chevron stipulates that Hess CEO John Hess cannot join Chevron’s board. In most circumstances, Hess will also be blocked from advising Chevron’s board or management.
Read more: FTC Hits Oil Giants Over Gun-Jumping Violation in Pre-Merger Deal
The FTC’s heightened scrutiny of these transactions reflects its intensified focus on mergers and acquisitions within the oil and gas industry, a sector that has recently seen a surge in consolidation activity.
According to The Wall Street Journal, the agency’s investigation revealed concerns about potential collusion involving Sheffield and Hess. Both executives were accused of communicating with competitors about global oil production strategies, a practice the FTC alleges could lead to inflated prices for essential fuels such as gasoline, diesel, heating oil, and jet fuel.
Sheffield has previously contested the allegations, stating that the FTC’s claims were based on a “false narrative” and a flawed legal interpretation. Meanwhile, Hess’s board of directors has dismissed the charges against its CEO as unfounded.
Source: The Wall Street Journal
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