The $59.5bn all-stock deal is set to position Exxon as the dominant producer in the Permian Basin. Credit: Katherine Welles/Shutterstock.

ExxonMobil’s nearly $60bn purchase of Pioneer Natural Resources is on the verge of receiving approval from the US FTC, reported Bloomberg, citing sources.   

The FTC’s nod is expected following an agreement that Pioneer’s co-founder and ex-CEO, Scott Sheffield, will not join Exxon’s board.  

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This development comes amid scrutiny over Sheffield’s alleged attempts to discuss oil pricing and output with the Organization of the Petroleum Exporting Countries (OPEC). 

The $59.5bn all stock deal, first announced in October 2023, is expected to position Exxon as one of the key producers in the Permian Basin, North America’s largest oilfield.  

It has been closely watched, especially as Pioneer was recently implicated in a lawsuit alleging collusion with OPEC to manipulate crude output.  

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Both Exxon and Pioneer refused to comment on the pending approval, the publication said.  

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The potential FTC approval occurs against a backdrop of heightened regulatory scrutiny.  

In March, more than 50 lawmakers called for increased oversight of a $230bn wave of consolidation in the oil and gas sector.  

The concern is that such mergers could lead to higher energy prices, supply squeezes and suppressed wages.  

The FTC, under Chair Lina Khan, has been particularly vigilant, examining several significant transactions including Diamondback Energy‘s $26bn bid for Endeavor Energy Resources. 

Oil industry leaders, however, argue that these mergers are beneficial.  

Exxon CEO Darren Woods has stated that the Pioneer acquisition would reduce production costs, making US oil more competitive internationally and benefitting consumers.  

Exxon has also committed to achieving net-zero emissions from Pioneer operations by 2035, advancing its previous goal by 15 years.