U.S. To Fight Exxon's Controversial Pioneer Takeover

The White House may have expressed concerns about Exxon Mobil's role in high energy prices impacting consumers, but it would likely face challenges in preventing the top US oil producer's planned $60 billion acquisition of Pioneer Natural Resources, as noted by five antitrust lawyers and experts, reported Diane Bartz and David French for Reuters.

The acquisition would grant Exxon ownership of the largest producer in the largest US oilfield. I Photo: Pioneer Natural Resources

While negotiations between Exxon and Pioneer are advanced, an agreement has not been reached yet. The acquisition would grant Exxon ownership of the largest producer in the largest US oilfield.

This development comes amid US President Joe Biden's criticism of energy companies for their increasing profits as gasoline prices rise.

His administration has specifically targeted Exxon for not increasing production despite its record earnings.

In 2021, the White House wrote to Federal Trade Commission (FTC) chair Lina Khan, requesting scrutiny of deals in the sector for potential "anti-consumer behavior." The antitrust regulator, FTC, slowed down the approval of many such deals while conducting reviews.

However, these deals were eventually allowed to proceed, and the regulator has not taken legal action to block an oil and gas production deal since 2000. Lawyers and experts suggest that the FTC would encounter difficulties in challenging Exxon's attempted acquisition of Pioneer.

This is because oil and gas companies have been effective in arguing that US mergers alone cannot suppress competition, as commodity prices are influenced by supply and demand forces in a vast global market.

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