10:56 AM EDT, 05/02/2024 (MT Newswires) -- (Updates to add FTC details in the second and third paragraphs and Pioneer's statement in the fourth.)

The US Federal Trade Commission declined to challenge Exxon Mobil's ( XOM ) acquisition of Pioneer Natural Resources ( PXD ) but asserted that Scott Sheffield, Pioneer's co-founder and former chief executive officer, must not take a seat on the combined entity's board.

"Sheffield's past conduct makes it crystal clear that he should be nowhere near Exxon's boardroom," said Kyle Mach, deputy director of the FTC's Bureau of Competition.

Sheffield allegedly attempted to collude with representatives of the Organization of Petroleum Exporting Countries and OPEC+ to cut oil and gas production, which would raise prices for Americans, the FTC said in a complaint.

"We disagree and are surprised by the FTC's complaint," Pioneer said in a statement. "During Sheffield's career, it was neither the intent nor an effect of Sheffield's communications to circumvent the laws and principles protecting market competition. On the contrary, Sheffield focused on legitimate topics such as investor feedback on independent oil and gas company growth and capital reinvestment frameworks."

Exxon did not immediately respond to a request for comment by MT Newswires.

Shares of Exxon rose 0.4% in recent trading Thursday, and Pioneer climbed 1.1%.

Price: 116.44, Change: +0.41, Percent Change: +0.35