Exxon and Mobil confirmed plans to merge in an historic $80 billion deal that reunites fragments of John Rockefeller's Standard Oil empire. With 21 billion barrels of oil and gas reserves on hand, enough to satisfy the world's entire energy needs for more than a year, Exxon Mobil Corp. will be behind only Saudi Arabia and Iran in terms of output.
The merger is in response to a worldwide crude oil glut that's dropped prices to the lowest in twelve years. Exxon and Mobil are depending on the merger to increase market share and production capabilites.
Some are worried that the proposed merger will violate anti-trust laws. At least twelve state attorneys generals' offices are engaged in talks to determine which jurisdictions will participate in a formal inquiry. And, in all likelihood, the Federal Trade Commission will look into the merger.
Timeline:
November 25: Exxon and Mobil announce plans to merge.
marcw@ldc.upenn.edu