Federal antitrust enforcers are currently investigating Exxon Mobil Corp.’s proposed acquisition of Pioneer Natural Resources Co., a transaction valued at $60 billion, according to recent securities filings.
Investigation by the Federal Trade Commission
On December 4th, Pioneer disclosed in a Securities and Exchange Commission filing that the Federal Trade Commission (FTC) had requested additional information regarding the merger. As a result, the waiting period for the companies to abide by will be extended, allowing the FTC 30 days to review the requested information after Exxon XOM, -1.32% and Pioneer PXD, -1.30% comply.
Pioneer emphasized in the filing that they are actively cooperating with the FTC throughout their review process. Both companies remain optimistic that the merger will be successfully completed within the first half of 2024.
Potential Scrutiny due to Sector History
With the oil and gas sector known for its significant regulatory attention, former FTC general counsel Stephen Calkins expressed his belief that the agency would carefully evaluate this acquisition. However, industry analysts argue that the decentralized nature of the oil and exploration sector, in which Pioneer operates, may ultimately lead regulators to approve the deal.