The Federal Trade Commission will allow a blockbuster $59.5 billion merger between Exxon Mobil and Pioneer Natural Resources to proceed, but blocks Pioneer founder and chairman Scott Sheffield from gaining a seat on Exxon’s board.
Exxon said the deal, which originally had Sheffield taking a board seat, is set to close May 3.
At the heart of the FTC’s order and consent order are allegations that, on Exxon’s board, Sheffield would engage in “collusive activity” that could potentially raise crude oil prices, leading consumers and businesses to pay higher prices for gasoline, diesel fuel, heating oil and jet fuel.