Federal Trade Commission is investigating ExxonMobil's $60B deal to acquire a Texas oil company
Security filings show the Federal Trade Commission is investigating ExxonMobil’s $60 billion deal to acquire a Texas oil company, potentially one the largest energy industry mergers in two decades
WASHINGTON — Federal regulators are investigating ExxonMobil's $60 billion deal to acquire a Texas oil company in what would be one the largest mergers in the energy industry in two decades, according to securities filings.
The Federal Trade Commission, which enforces federal antitrust law, has asked for additional information from the companies about Exxon’s proposed acquisition of Pioneer Natural Resources. The request is a step the agency takes when reviewing whether a merger could be anticompetitive under U.S. law. Pioneer disclosed the request in a filing Tuesday.
The investigation comes after Senate Majority Leader Chuck Schumer and 22 other Democratic senators urged the FTC to investigate the Exxon-Pioneer deal and a separate acquisition by oil giant Chevron, a proposed $53 billion purchase of Hess Corporation. Both deals are among the largest petroleum deals in U.S. history and could violate antitrust law, the Democrats said. There’s no public indication of a federal inquiry into the Chevron merger.
Schumer said Tuesday he asked the FTC to «take a hard look at Exxon’s blockbuster merger and block it if it would lead to higher prices, hurt competition or force families to pay more at the pump. I’m glad the FTC is taking this step.''
The FTC, which shares antitrust authority with the Justice Department, can sue in court to block a merger or decline to take action, effectively clearing the deal. A spokesman for the commission declined to comment Tuesday.
Chevron, Exxon and other oil companies have announced huge profits
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