Exxon Mobil and Chevron Megadeals Are Cleared of FTC Antitrust Concerns
Pioneer Natural Resources’ former CEO and Hess’s CEO are barred from serving on the oil companies’ boards
The Federal Trade Commission on Friday approved separate consent orders resolving antitrust concerns over two multibillion-dollar oil deals: Exxon Mobil’s XOM 0.90%increase; green up pointing triangle purchase of Pioneer Natural Resources and Chevron’s CVX 1.31%increase; green up pointing triangle acquisition of Hess HES 1.08%increase; green up pointing triangle.
Under the order for Exxon’s $60 billion merger, the company is prohibited from nominating, designating or appointing former Pioneer Chief Executive Officer Scott Sheffield to its board of directors. He is additionally barred from serving in any advisory role to Exxon’s board or management team, the FTC said.
Chevron, according to the order for its $53 billion deal for Hess, won’t be allowed to let Hess CEO John Hess serve on its board. Barring certain expectations, he would be blocked from serving in an advisory role to Chevron’s board or management team as well.
The FTC has ramped up its scrutiny of oil and gas deals as the oil patch has seen frantic M&A activity.
These orders follow complaints from the agency alleging that Sheffield and Hess separately attempted to collude and communicated with competitors about global oil output, which could have resulted in American consumers and businesses paying higher prices for gasoline, diesel fuel, heating oil and jet fuel.
At the time of these allegations, Sheffield said the FTC built its case against him on a false narrative about his statements and a dubious interpretation of the law. Hess’s board, meanwhile, said the allegations against its CEO were without merit.