Exxon Mobil Corp is on the verge of finalizing its $60 billion acquisition of Pioneer Natural Resources after reaching an agreement with antitrust enforcers that excludes former Pioneer CEO Scott Sheffield from Exxon’s board, according to the Wall Street Journal. The Federal Trade Commission (FTC) will allege that Sheffield engaged in collusive activity with OPEC members, potentially raising oil prices.
The FTC claims that Sheffield sent hundreds of messages to OPEC representatives discussing market dynamics such as pricing and production levels. Although Sheffield retired as Pioneer’s CEO on December 31, he continued serving on its board and was set to join Exxon’s board once the acquisition deal closed. Exxon representatives stated that they have been working constructively with the FTC and have provided extensive documentation to the agency as part of its review, which is expected to wrap up this week.