Exxon Mobil Poised for Green Light on Pioneer Natural Resources Acquisition

A new chapter in the American oil industry appears imminent: Exxon Mobil, the giant among oil corporations, seems poised to soon obtain the necessary approval from the U.S. antitrust authority, the FTC, for the planned acquisition of the shale oil company Pioneer Natural Resources. This is reported by Bloomberg, citing sources familiar with the matter. According to these sources, the two companies have agreed to minor concessions that are likely to pave the way for the authority's approval. An official announcement regarding this significant merger could come within the next few days. The news of the intended acquisition had already caused a stir last October when the companies publicly disclosed an agreement on the transaction, valued at a substantial $64.5 billion. This acquisition would be Exxon's largest since the historic merger with Mobil in 1999. An intriguing aspect of the acquisition is the proposed stock swap: Exxon Mobil intends to finance the purchase exclusively through the use of its own shares. Investors of Pioneer Natural Resources were enticed with an offer to receive 2.3234 Exxon Mobil shares for each of their securities. By doing so, Exxon Mobil not only expresses confidence in its own corporate value but also sends a clear signal regarding the strategic importance that the shale oil business will hold for the company in the future.