Exxon Mobil reaches agreement with FTC, set to close $60B Pioneer deal

The Federal Trade Commission will wave through Exxon Mobil‘s roughly $60 billion acquisition of Pioneer Natural Resources after reaching an agreement 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 agreement will bar Pioneer’s former CEO Scott Sheffield from joining the Exxon board.

The push to remove Sheffield was due to concerns about his prior discussions with OPEC, according to the source.

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

Exxon first announced the deal for Pioneer 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 well in excess of what either company is capable of doing on a standalone basis,” Exxon chairman and CEO Darren Woods said in a press release at the time.

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

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