FTC Overturns Board Bans on Hess, Sheffield in Chevron, Exxon Deals

The Federal Trade Commission (FTC) has reversed previous orders barring John Hess and Scott Sheffield from joining the boards of Chevron and Exxon Mobil, respectively, related to their companies' mega-mergers. These bans were initially imposed over concerns that Hess and Sheffield might facilitate collusion with OPEC and OPEC+, but the FTC found no legal basis for such restrictions and cited a lack of evidence for antitrust violations. The decision, unanimous among the three Republican FTC commissioners under Chairman Andrew Ferguson, marks a shift from the Biden-era FTC policies. Chevron's $53 billion acquisition of Hess Corp. and Exxon's $63 billion acquisition of Pioneer Natural Resources highlight significant consolidation in the energy sector. Both Hess and Sheffield denied the allegations of collusion with OPEC. Industry observers see this reversal as signaling a more relaxed regulatory approach to board appointments in large mergers within concentrated industries like oil and gas.