ExxonMobil Merger

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On November 30th, 1999, Mobil, the petroleum industry leader worth $184.5 billion, bought out Exxon, the number two company in the industry worth $77.1 billion to form the ExxonMobil Corporation (ExxonMobil Corporation, 2013; “ExxonMobil joint proxy statement in S-4 SEC filing,” 1999). The finalization of this horizontal merger occurred about a year and a quarter after terms of it were officially announced on August 11th, 1998, approximately two months after the CEO’s of both companies first met to discuss the possibility of a merger. Prior to the merge, their combined market value was $261.6 billion which increased to $278.8 billion immediately after the merge (“ExxonMobil joint proxy statement in S-4 SEC filing,” 1999). The 1997 profit of these two companies combined totaled $11.8 billion with $203.1 billion in combined revenue. Between the two companies, 122,700 people were employed prior to the merge. They owned over 48,000 gas stations around the country with energy reserves greater than what all of Canada has stored (Corcoran, 2010). This merge brought ExxonMobil to the top of the “big three” oil companies in the world ("Exxon-Mobil merger done," 1999).
This merger came after an 11 month review of the deal by the Federal Trade Commission (FTC), one of their longest reviews ever. The merge was finally approved by the FTC by a 4-0 vote, but with certain conditions that ExxonMobil would have to follow. These included selling 2,431 stations, primarily in California, Texas, and the northeastern part of the United States; not purchasing Tosco Corporation gas stations in Arizona; selling the refinery and jet turbine oil business it owned in Benicia, California; and discontinuing the sale of Exxon labeled gas and diesel fuel for a...

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...m http://corporate.exxonmobil.com/en/company/about-us/history/overview
“ExxonMobil joint proxy statement in S-4 SEC filing.” (1999, April 5). U.S. Securities and Exchange Commission. Retrieved from website: http://sec.edgar-online.com/exxon-mobil-corp/s-4-securities-registration-business-combination/1999/04/05/section3.aspx
Exxon-Mobil merger done. (1999, November 30). CNN Money. Retrieved from http://money.cnn.com/1999/11/30/deals/exxonmobil/
Fortune global 500. (2013, July). Fortune, Retrieved from http://money.cnn.com/magazines/fortune/global500/?iid=G500_fl_header
Wells, J., Agbara, G. M., Abuliak, A., Dezhbakhsh, H., El-Osta, B., Farrow, S., Karikari, J. A., & Wasielewski, L. United States General Accounting Office, (2004). Effects of mergers and market concentration in the U.S. petroleum industry. Retrieved from website: http://www.gao.gov/new.items/d0496.pdf

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