Biden admin launches investigation into ExxonMobil’s $60 billion merger deal

The Biden administration recently launched an investigation into ExxonMobil's $60 billion merger deal with a Texas oil company. Associated Press It was reported on Tuesday.

October, ExxonMobil announced plans to merge with Pioneer Natural Resources in an all-stock transaction. The pending deal will more than double the company's Permian footprint, the paper noted.

ExxonMobil's press release states, “This merger combines Pioneer's more than 850,000 net acres in the Midland Basin and ExxonMobil's 570,000 net acres in the Delaware and Midland Basins, leading to industry-leading “This will create a high-quality, untapped U.S. unconventional inventory position that “Together, the Permian has an estimated 16 billion barrels of oil equivalent resources.”

The company believes this agreement will strengthen U.S. energy security.

Darren Woods, ExxonMobil Chairman and CEO, said: The combined capabilities of both companies will create long-term value far beyond what either company could achieve alone. ”

“Their Tier 1 land is very contiguous, which opens up more opportunities to deploy our technology, improves operational and capital efficiencies, and significantly increases production. Equally important: “As we seek to integrate the two companies, we plan to consolidate environmental best practices to reduce our environmental impact and accelerate Pioneer's net zero plan from 2050 to 2035,” Woods added.

Last month, Senate Majority Leader Chuck Schumer of New York and 22 others Senators sent a letter It has asked the Federal Trade Commission to investigate the pending transaction. Democratic lawmakers say the merger could lead to higher gas prices.

“These transactions are likely to harm competition and could result in higher consumer prices and lower overall U.S. production,” the senators told the FTC.

ExxonMobil addressed critics' concerns about competition.

“For anyone concerned about competition, it should be reassuring to know that the two companies together account for about 5% of U.S. oil production. For all those seeking savings, this merger will be nothing but positive for the U.S. economy and environment,” ExxonMobil said in a statement.

The deal requires approval from federal regulators.

Earlier this week, a securities filing revealed that the FTC had begun investigating the merger for possible antitrust violations.

Schumer encouraged the agency to “take a hard look at Exxon's big merger and stop it when it raises prices, harms competition, or forces families to pay higher prices.”

“I'm glad the FTC is taking this action,” he said.

Woods said he is not concerned about the FTC investigation.

“I don't think there's an angle where you can look at this potential combination and find any competition concerns,” he said. CNBC.

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