FTC reverses bans on two executives joining Chevron, Exxon boards
WASHINGTON, July 17 (Reuters) - The U.S. Federal Trade Commission on Thursday reversed bans on the CEOs of takeover targets joining the boards of Chevron CVX.N and Exxon Mobil XOM.N that the Biden administration made a condition of clearing the oil giants' deals to buy two oil producers.
The FTC released Exxon, which acquired Pioneer Natural Resources last year, from an order barring former Pioneer CEO Scott Sheffield from its board. Chevron, which agreed to buy Hess HES.N in 2023 for $53 billion, was released from a similar order keeping that company's CEO, John Hess, off its board.
The decisions are the latest move by FTC Chairman Andrew Ferguson to reverse actions by his Democratic predecessor, Lina Khan.
Khan and her Democratic colleagues had raised concerned Hess and Sheffield would coordinate with members of the Organization of the Petroleum Exporting Countries. Ferguson and Republican Commissioner Melissa Holyoak dissented at the time, saying the orders exceeded the FTC's authority.
"We are very pleased with the FTC's unanimous decision," a Chevron spokesperson told Reuters.
"I appreciate the current commissioners for their willingness to review this case, and I’m obviously pleased that objectivity and fairness has carried the day in their decision to vacate the prior order," Sheffield said.
Exxon and Hess did not immediately respond to Reuters requests for comments.
While the FTC's three Republican commissioners voted unanimously to reverse the decisions, Commissioner Mark Meador said in a statement that OPEC and OPEC+ "operate as a de facto cartel," making oil markets highly concentrated. The FTC "should not hesitate to bring enforcement actions against actual collusion as well as invitations to collude," he said.
Chevron struck a deal to acquire smaller U.S. oil producer Hess in October 2023, with an eye on the latter's 30% stake in the prolific Stabroek Block in Guyana that is operated by ExxonMobil with a 45% interest.
ExxonMobil and Hess are locked in an arbitration case, with a ruling related to a major oilfield project in Guyana set to determine whether Chevron can move forward with its planned acquisition of Hess.
Related Articles
What hurdles lie ahead for any US-China TikTok deal?
By David Shepardson WASHINGTON, Sept 15 (Reuters) - Questions and potential hurdles surround a framework agreement announced on Monday between the U.S. and China that would switch short-video app TikTok to U.S.-controlled ownership, including whether any deal will comply with a 2024 law. U.S. and
[Reuters Analysis] Hedging surge reflects crowded trade - long Wall Street, short U.S. dollar: McGeever
By Jamie McGeeverORLANDO, Florida, Sept 16 (Reuters) - The rush to hedge U.S. equity exposure this year was initially seen as part of a broad 'de-dollarization' process, reflecting global investors' discomfort with President Donald Trump's trade, economic and foreign policy agendas. ...
September Fed Watch: A Policy Pivot That Could Make or Break the Bull Stock Market
TradingKey - The Fed’s September FOMC meeting is widely seen as locking in the first rate cut of 2025. Yet strategists at Morgan Stanley, JPMorgan, and Oppenheimer warn that as investors shift focus to slowing growth, a more cautious tone may replace bullish stock sentiment.
Effects of Interest Rate Cuts: Impact of Fed's September Meeting on Crypto Market
The Fed’s rate cut decision is a major bullish catalyst for crypto — but it comes with uncertainty. Investors should understand the economic rationale behind the move and adjust strategies accordingly. Staying flexible, informed, and disciplined is key to thriving in crypto’s fast-moving environment
Fed to Cut Rates: All Asset Prices Up!
TradingKey - The Federal Reserve is almost certain to restart its interest rate cut cycle on 17 September this year. After in-depth research, we have concluded that cryptocurrencies, the broader U.S. stock market, and short-term U.S. Treasury bonds will all go up.
