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The Michigan Daily Online Exxon acquires Mobil in $73.7B deal NEW YORK (AP) - Exxon agreed to buy Mobil for $73.7 billion yesterday in a deal that would create the largest corporation in the world and put back together two of the biggest pieces from the 1911 breakup of John D. Rockefeller's Standard Oil. Roughly 9,000 jobs will be eliminated worldwide as a result of the takeover, or about 7 percent of the companies' combined work force of 123,000, Exxon Chair Lee Raymond said. Despite the new company's vast reach, a world oil glut is expected to keep pump prices at rock-bottom levels for now. Analysts also expect the companies will have to sell off numerous gas stations and refineries to satisfy antitrust regulators. The deal is the latest example of rapid consolidation in an industry whose profits have been cut by worldwide overproduction, weak demand and slumping prices. "We need to face some facts. The world has changed," Mobil Chair Lucio Noto said. "The easy things are behind us." The company will be known as Exxon Mobil Corp. There will continue to be Mobil and Exxon gas stations, as well as the Exxon tiger and Mobil's red Pegasus logo. Together, Exxon and Mobil accounted for about 13.5 percent of U.S. gasoline sales last year, but just 4 percent of global oil production capacity. Exxon Mobil will have about 48,500 gas stations around the globe, with roughly a third in the United States, plus exploration and production operations worldwide. Exxon Mobil will surpass Royal Dutch-Shell Group as the No. 1 energy company and vault past General Motors Corp. as the biggest corporation in the world, with $203 billion in combined revenue last year. Exxon is about twice Mobil's size in revenue. The stock swap deal will give Mobil shareholders 1.32 shares of Exxon. The deal tops British Petroleum's planned $57.1 billion purchase of Amoco Corp. as the largest corporate takeover. At current stock prices, it also outranks SBC Communications Inc.'s $70.3 billion merger with Ameritech Corp. and the $65.1 union of Bell Atlantic Corp. and GTE Corp. The Exxon-Mobil deal was prompted in part by slumping oil prices. The average retail price for regular unleaded gasoline was 97.4 cents this week, the lowest since the Energy Department began keeping track in 1990. At the time of the Persian Gulf crisis in 1990, the wholesale price of a barrel of crude oil topped $40. Today it's around $11. Oil prices have been hammered by a combination of oversupply from OPEC and weak demand because of the financial turmoil in Asia and unusually warm autumn weather in the United States. Analysts say that to slash costs and boost profits, smaller companies will continue merging, and larger players such as Texaco, Chevron, Unocal and Atlantic Richfield will find partners, too. "The pressure continues because anybody who's left in the middle like Chevron or Arco is going to be feeling kind of isolated," said Fergus MacLeod, an analyst with BT Alex Brown. Executives involved in the Exxon-Mobil deal expect it to reduce annual expenses by $2.8 billion in the near term. In another deal announced yesterday, France's Total SA will buy Belgium's Petrofina SA for $11.8 billion to create a new European oil power. Combining Exxon and Mobil raises the specter of Standard Oil, the trust busted by the government 87 years ago, but most analysts said that antitrust concerns will not be strong enough to block the deal. Mobil is the former Standard Oil of New York; Exxon was once Standard Oil of New Jersey. Analysts believe regulators will demand that Exxon and Mobil sell off numerous gas stations in areas in the Northeast where they dominate. The companies may also have to sell stations and refineries in the Southwest and on the West Coast. The new company will be based at Exxon's headquarters in Irving, Texas. Raymond will be chairman, chief executive and president. Noto will serve as vice chairman. 12-02-98 Previous Article Next Article HOME| NEWS| EDITORIAL| ARTS| SPORTS| ARCHIVES| ©1998 The Michigan Daily Letters to the editorshould be sent to: daily.letters@umich.edu Comments about this site should be sent to: online.daily@umich.edu разделы доставка санкт получение выписка егрп масло облепих.концентрат шарошка алмазный купить нипель квн съемка купить джойстик pki восстановление файл градирня вентиляторные грд облицовка электрокамин стимулирующий лотерея силуэт слимент лифт доломит книга кремль герб рф тач-скрин монитор электропечь dimplex model elba купить ниппель маска косметический концепция совершенствование сбыта организовать рассылка красный площадь васильевский спуск сенсорный экран устройство продажа кофе огнестойкий краска ферромолибден ваза 2111 trinity hi-fi внутренний перегородка масло форма система видеоконференция эфирный антенна funke рефконтейнеры доставка хим. реагент плата видеозахвата гипсокартон рассылка двухтарифные электросчетчик ваза 2110 напыление ппу спецобувь производитель степ-аэробика факсимиле ванна моечный купить джойстик mobil cut прайс эфирный антенна александр вертинский. желтый танго имплантат sky link альтернативный медицина инвертор пленка пэ электропечь dimplex model lee rc фосфорецирующая краска арочный конструкция маршрутизатор арочный конструкция детский лагерь пионер мва беременность род фейрверк вечеринка кристофер брэнд инженерный геодезия доставка ноутбук озеленение фарфор portofino консультирование организация российский флаг сварочный пост гайковерт электрический фейрверк праздник скрипт рассылка объвлений вышивка флаг теплогенераторы master лакокраска масло облепих.концентрат александр вертинский. желтый танго штанга насосный трубогиб дорном кулер тихий трубогиб дорном велюкс карбид кальций медицинский перевод слим лифт куллер qtek mobil cut