Exxon Mobil (XOM.N) and shale oil producer Pioneer Natural Resources (PXD.N) have received a second request from the Federal Trade Commission of the United States for further information on their proposed acquisition of $40 billion, according to a statement released by Pioneer on Tuesday.
Pioneer stated in a regulatory filing that the firms are involved in discussions with the Federal Trade Commission (FTC) and continue to anticipate that the transaction will be finalized during the first half of 2024.
In a letter that was sent to the Federal Trade Commission in November, the Majority Leader of the United States Senate, Charles Schumer, along with 22 other Democratic senators, explained that the multibillion-dollar acquisitions of significant oil and gas firms, Exxon and Chevron (CVX.N), might result in increased costs for consumers.
On Tuesday, Schumer reaffirmed his interest in the Exxon agreement, stating that it “has all the hallmarks of harmful, anticompetitive effects.”
After stating that “if this merger were to go through, it would most certainly raise gas prices for families across the country,” he said that the agency needs to file a lawsuit to halt the agreement “if they find any antitrust laws are being violated.”
In October, Exxon announced the purchase of Pioneer. The same month, Chevron (CVX.N) agreed to purchase Hess (HES.N) for $53 billion.
Despite the magnitude of the planned acquisition, antitrust experts stated in October that the Federal Trade Commission would have difficulty preventing it from occurring since it is a merger of producers rather than a combination of refiners or retail outlets.
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