The Federal Trade Commission (FTC) has barred Scott Sheffield, the founder and former chief executive of Pioneer Natural Resources Co (NYSE:PXD), from taking a seat on Exxon Mobil Corp (NYSE:XOM, ETR:XONA)'s board of directors following its pending $64.5 billion acquisition of the group.
It aims to prevent any potential for collusive behavior that could adversely affect crude oil market prices.
The FTC expressed concerns that Sheffield’s previous attempts to collaborate with OPEC representatives could lead to inflated prices for gasoline, diesel fuel, heating oil, and jet fuel, ultimately harming American consumers and businesses.
Deputy director of the FTC’s Bureau of Competition Kyle Mach said: "Mr. Sheffield’s past conduct makes it crystal clear that he should be nowhere near Exxon’s boardroom.
“American consumers shouldn’t pay unfair prices at the pump simply to pad a corporate executive’s pocketbook."
The prohibition extends to any Pioneer employee or director, except for certain specified individuals, from joining the Exxon board for the next five years.
Furthermore, Exxon must adhere to reporting obligations under the Clayton Act Section 8 for the next decade.
Exxon is expected to close the megadeal on Friday.