Merger Analysis Paper

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Merger Analysis Paper Exxon Mobil Corporation, formerly named Exxon Corporation, was incorporated in the State of New Jersey in 1882. On November 30, 1999, Mobil Corporation became a wholly-owned subsidiary of Exxon Corporation, and Exxon changed its name to ExxonMobil Corporation. ExxonMobil Corporation has several divisions and hundreds of affiliates, many with names that include ExxonMobil, Exxon, Esso or Mobil. ExxonMobil is the one of world's largest integrated oil company. Exxon Mobil engages in oil and gas exploration, production, supply, transportation, and marketing around the world. It has proved reserves of 21.2 billion barrels of oil equivalent. ExxonMobil's 45 refineries in 25 countries have a capacity of producing 6.3 million barrels per day. The company supplies refined products to 42,000 service stations in more than 100 countries that operate under the Exxon, Esso, and Mobil brands (including more than 16,000 in the US). Exxon Mobil is also a major petrochemical producer. The 1999 marriage of the two companies was facilitated for very different market and industry pressures than what the oil industry faces today. In the late 90’s companies in the oil industry and other sectors faced what many experts called “a new global crisis” in which excess oil capacity along with technological and other changes in the industry have turned the traditional oil business model on its head. Where prices could once be based on costs and passed on to consumers, companies were increasingly slashing their costs to meet falling price targets. This situation being a stark contrast to what the world is seeing today. With the need to slash costs while also looking to increase revenue, Exxon was left looking for a way to increase th... ... middle of paper ... ...ately the increased value and maximized earnings is the motive and perceived strategy established by Exxon Mobile through the Horizontal merger. Exxon Mobile Corporation was able to accomplish this by reaching a larger geographical area and becoming a bigger threat to other oil competitors. References Weston, J. F., Mitchell, M. L., & Mulherin, J. H. (2004). Takeovers, restructuring, and corporate governance (4th ed.). New York: Pearson. Weston, J.F. Mitchell, M.L., & Mulherin, J.H. Takeovers, restructuring and corporate governance 2004 (4th ed.) Upper Saddle River, NJ: Pearson Exxon-Mobil merger done. (1999). CNN Money. Retrieved July 18, 2011, from http://money.cnn.com/1999/11/30/deals/exxonmobil/ Strategic Management. (2007). Horizontal Integration. Retrieved July 18, 2011, from http://www.quickmba.com/strategy/horizontal-integration/
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