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Chesapeake, Southwestern say deal delayed after second FTC request for information
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Chesapeake, Southwestern say deal delayed after second FTC request for information
Apr 5, 2024 3:54 AM

April 5 (Reuters) - Chesapeake Energy ( CHK ) and

Southwestern Energy ( SWN ) said on Friday the closing date of

their proposed $7.4 billion merger has been pushed back to the

second half of the year after receiving a second request for

information from the Federal Trade Commission.

Chesapeake had agreed to buy smaller rival Southwestern

Energy ( SWN ) earlier this year, a deal that will make it the largest

independent U.S. natural gas producer. The deal was earlier

expected to close by the second quarter of 2024.

U.S. lawmakers have sought increased scrutiny by the FTC

over multi-billion dollar deals. Nearly 50 Democrats in the U.S.

Congress in March urged the regulator to probe oil and gas

company deals and expand current investigations to protect

consumers and industry competition.

Exxon Mobil ( XOM ) and Pioneer Natural Resources ( PXD )

received similar requests from the FTC related to their $60

billion merger, along with Chevron ( CVX ) for its buyout of

Hess Corp. ( HES )

Chesapeake and Southwestern said they would cooperate with

the FTC in its review.

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