Exxon-Pioneer deal set to be cleared by FTC, reports say. But there's an unusual twist.

By Robert Schroeder

Exxon Mobil Corp.'s (XOM) $60 billion takeover of Pioneer Natural Resources is set to be cleared by U.S. regulators, according to reports Wednesday, but there's a twist involving the latter's former chief executive.

The Pioneer (PXD) founder, former CEO and current board member Scott Sheffield won't sit on the combined company's board as had been expected, according to reports by Semafor and the Wall Street Journal.

The Federal Trade Commission is set to allege as soon as Wednesday that Sheffield engaged in collusive activity that could have raised the price of oil, according to the Journal's report, citing people familiar with the matter.

As part of the agreement for the deal, Exxon Mobil will enter into a consent decree with the FTC, agreeing to keep Sheffield off the board, the Journal reported, citing sources familiar with the matter.

An FTC spokeswoman said the agency had no comment.

This report was updated to reflect that Sheffield is Pioneer's former, not current, CEO.

-Robert Schroeder

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05-01-24 2014ET

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