• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 11 days What fool thought this was a good idea...
  • 1 day Bad news for e-cars keeps coming
  • 9 days A question...
  • 14 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 14 days They pay YOU to TAKE Natural Gas

Exxon To Offer All-Stock Deal Worth $58 Billion To Pioneer Natural Resources

Exxon is later today expected to announce an all-stock acquisition offer for Pioneer Natural Resources, Reuters has reported, citing unnamed sources.

Bloomberg, also citing unnamed sources, said that the deal could be worth $58 billion, with the price per share at $250, representing a 16% premium to Pioneer’s closing price last Thursday when the Wall Street Journal reported on the acquisition negotiations.

By Tuesday this week, the stock of the target company had gone up to over $237 per share, Bloomberg noted.

The size of the deal is roughly the same as Exxon’s record profit for 2022.

Consolidation has become the preferred method of growth for the large players in the U.S. shale patch. The last two years saw a string of large deals, including Occidental’s acquisition of Anadarko for some $38 billion. Pioneer also grew through acquisitions, buying Parsley Energy for over $7 billion in 2020 and DoublePoint Energy for over 6 billion in 2021.

Earlier reports on the tie-up between Exxon and Pioneer said that the deal would be subjected to meticulous scrutiny from antitrust authorities but there was a good chance it would be allowed to proceed, Reuters reported last week.

The reason for this is that the Federal Trade Commission does not have a strong argument against an all-U.S. merger between oil companies. According to legal professionals, the oil industry has already argued successfully that a local merger, even between such large players, would not represent a cause for antitrust concern because of the global nature and size of the oil market.

Also, upstream was not the focus of antitrust authorities’ attention when it came to the oil industry.

ADVERTISEMENT

"This isn't a refinery deal or a retail deal, which are usually the main drivers of antitrust risk. Those are the deals where we see problems," antitrust attorney Andre Barlow told Reuters.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News