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Exxon Mobil Reaches FTC Settlement, Closes to $60 Billion Pioneer Deal

A view of the Exxon Mobil refinery in Baytown, Texas.

Jessica Rinaldi | Reuters

The Federal Trade Commission will signal Exxon Mobilethe acquisition of approximately 60 billion dollars of Pioneering natural resources after reaching a deal with the energy giant, a source familiar with the matter told CNBC.

The FTC will not block the deal now that the regulator and Exxon have reached a consent agreement, the source said. The deal will prevent former Pioneer CEO Scott Sheffield from joining Exxon’s board.

The decision to withdraw Sheffield was due to concerns over its previous discussions with OPEC, according to the source.

Exxon and the FTC declined to comment. The deal was first reported by Bloomberg News.

Exxon first announced the Pioneer deal in October, in an all-stock transaction valued at $59.5 billion. Exxon said the acquisition would more than double its production in the Permian Basin.

“Pioneer is a clear leader in the Permian, with a unique asset base and people with deep industry knowledge. The combined capabilities of our two companies will provide long-term value creation far beyond what either company is capable of on its own. ” Exxon Chairman and CEO Darren Woods said in a press release at the time.

Shares of Exxon and Pioneer were little changed in extended trading Wednesday.

— CNBC’s Pippa Stevens and Mary Catherine Wellons contributed reporting.

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