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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 редизайн кострома охота легавый kyiv apartaments service растворитель устройство плавный пуск подбор контрацепция аппарат фигурный нарезка тест светящийся краска ваза 2111 купить 6131 ножной пластырь охота быкова рукавица антенна бустер мужчина выходной долг флюрисцентная краска слюдопластовые втулка компания доминике природа охота дмитрий шумок природа охота охота зеркало babyliss вихревой теплогенераторы купить нипель детский лагерь пионер управление архангельск стенд холодильник норд система дымоудаления компания сент-лючии нард онлайн кулер процессор слюдопластовые втулка обогащение кислородом центр консультирование иномарка профессиональный видеосъемка изготовление пленка узи сделать очки защитный венеролог rittal папиллома хоссе карерас билет кристофер брэнд откачка туалет выписка егрп промышленый альпинизм купить 6131 варочный поверхность cata доставка проведение анкетирование виные холодильник рефрижератор вытяжка крона монитор видеодомофона, монитор, видеодомофон юр.адрес проходить осмотр гинеколог 8800 white gold путевой стена купить отвед компания сент-лючии доставка дров корпоративный обслуживание kyiv apartaments service гайковерт электрический кислотостойкий краска мигрень система перемешивание шампанский заказ доставка дров снегоуборочный машина nokia 6021 купить бахила производитель дефектоскопия сварной швов укрепление откос медицинский перевод катетер нард скачать бесплатный лечение слух восстановление удаленный информация травертин легранд маска косметический теплолюкс слабость головокружение куллер 478 cad купить морозильный витрина перевод испанский промышленный аккумулятор время ярославль купить хлебопечку холодильник neff dect desktop откачка туалет nokia 3230 купить выставочный витрина организация видеоконференция лечение щитовидный железа автоматический оповещение купля производственный комплекс корпаративные праздник автошкола подшипниковый узел выделение кислорода ножной пластырь снегоход буран фирменный флаг ковры резиновый корвет-телеком газонокосилка stiga купить раструб санфаянс кс-4361а красный площадь васильевский спуск фосфорный краска скребковый конвейер купить электрооткрывалку выборочный лак урок охота метрореклама нижнийновгород бейсболки заказ mobil cut