In a bold move, Senate Majority Leader Chuck Schumer has called upon the U.S. Federal Trade Commission (FTC) to probe the recent multibillion-dollar acquisitions by Exxon Mobil (XOM) and Chevron (CVX) for potential antitrust violations. Schumer, along with a group of Senate Democrats, expressed concern that the mergers could harm competition and consolidate control over gasoline prices in the United States.

In a letter addressed to FTC Chair Lina Khan, Schumer alleged that Exxon's merger with Pioneer Natural Resources (PXD) and Chevron's deal for Hess (HES) posed a significant threat to competition in the industry. The oil giants recently made noteworthy acquisitions in the Permian Basin and South America, with Chevron spending $53 billion for Hess and Exxon Mobil sealing a $60 billion deal for PXD. These transactions mark the most significant consolidation in the oil industry in over two decades.

Should the FTC discover any antitrust violations, Schumer called for strong opposition to the mergers. The Senate Democrats who signed the letter in support of Schumer's cause were Richard Blumenthal of Connecticut, Cory Booker of New Jersey, Tammy Duckworth of Illinois, John Fetterman of Pennsylvania, and Amy Klobuchar of Minnesota.

Chevron's CEO, Mike Wirth, expressed confidence on a call regarding the Hess acquisition, stating that CVX did not see any antitrust concerns in the U.S. or Guyana. Wirth emphasized that the deal is beneficial for shareholders of both companies and promotes energy security. However, Schumer and his fellow senators remain skeptical of these assertions and urged the FTC to thoroughly investigate the potential repercussions of the acquisitions.

The news of the FTC investigation and concerns over antitrust violations have taken a toll on the stock prices of both Chevron and Exxon Mobil. On Wednesday, Chevron's stock, listed as a Dow Jones component, dropped 1.2% to $143.97. Meanwhile, Exxon Mobil's stock experienced a slight decline of 0.2% to $105.63.

Since the announcement of Exxon Mobil's merger with PXD on October 11, XOM shares have slipped by approximately 1%. Chevron's stock, on the other hand, has seen a significant decline of over 9% since reporting its deal with Hess on October 23. Both companies have experienced losses in their stock prices over the past week, with Chevron dropping by over 13% and Exxon Mobil facing a 5% loss.

With the FTC investigation looming, the future of these mega-deals hangs in the balance. Shareholders, industry observers, and consumers alike will be closely monitoring the outcome as the FTC determines whether these acquisitions violate antitrust laws.