ConocoPhillips announced on Friday that the Federal Trade Commission (FTC) has issued a second request regarding its late May agreement to acquire Marathon Oil for $22.5 billion. This development is the latest indication that the rapid consolidation within the oil and gas industry is under significant regulatory scrutiny.
Details of the FTC’s Second Request
Both ConocoPhillips, a leading U.S. independent oil producer, and Marathon Oil received the FTC’s request for additional information and documentary materials on Thursday. According to ConocoPhillips’ regulatory filing, the second request extends the waiting period imposed by the Hart-Scott-Rodino Antitrust Improvements Act of 1976 until 30 days after each party has “substantially complied” with the request, unless the FTC drops it sooner.
The filing also noted that ConocoPhillips and Marathon are cooperating constructively with the FTC and expect to finalize the merger in the fourth quarter of 2024, pending all required regulatory approvals and approval by Marathon’s stockholders.
FTC Eyes $23B ConocoPhillips Deal : Surge in Oil and Gas Industry Deals
The FTC’s review of the ConocoPhillips deal comes amid a wave of mergers and acquisitions in the oil and gas sector over the past nine months. This activity has positioned the oil and gas industry as one of the top sectors for M&A activity in the first half of the year, outpacing traditionally dominant industries like finance and real estate.
