The Biden Administration May Stop Exxon from Buying Pioneer
Blaming Exxon for high gasoline prices in the US, the administration of President Joe Biden will try to leave the deal to buy Pioneer, writes Reuters
As a result of the merger of Pioneer and Exxon, the latter will become the largest producer of petroleum products in the region.
Analysts at RBC Capital Markets note that today Pioneer is the largest operator of the Permian field, providing 9 percent of gross production in the country. In turn, Exxon produces 6 percent of production, so the merger deal will have serious consequences.
Joe Biden has already criticized Exxon for not increasing oil production amid a sharp rise in gasoline prices in the United States.
However, lawyers believe that the US presidential administration will not be able to prevent the merger of the two companies. In their opinion, the Federal Chamber of Commerce will not be able to prove that the merger of companies affects competition, since prices for raw materials are dictated in large part by the world market.
