Exxon and Mobil Create World's Largest Oil Company Through $77.2 Billion Merger

Strategic Insights -

Exxon and Mobil announced a historic $US77.2 billion merger, forming the world's largest oil company, Exxon Mobil Corp. The combined entity will surpass Royal Dutch-Shell Group and General Motors Corp in size, with a total revenue of $US 203 billion last year. The deal is expected to save $US2.8 billion in costs, but may result in significant job cuts.

Key Takeaways:

  • The merger between Exxon and Mobil creates the world's largest oil company, with a combined revenue of $US 203 billion.
  • The deal is expected to save $US2.8 billion in costs through synergies and efficiencies.
  • The combined entity will have about 47,000 petrol stations worldwide, with roughly a third located in the United States.
  • The US Federal Trade Commission may force the companies to sell off gas stations and refineries to satisfy anti-trust concerns.
  • Regulators may aim to reduce the companies' concentration of gas stations in the north-east, particularly in New York and New Jersey.
  • The companies could also be forced to trim their strong businesses in motor oil and other lubricants.

Statistics:

  • $US77.2 billion (approximately $A123 billion): the value of the merger between Exxon and Mobil.
  • $US2.8 billion (approximately $A4.47 billion): the expected cost savings through the merger.
  • $US 203 billion: the combined revenue of Exxon and Mobil last year.
  • 47,000: the number of petrol stations owned by the combined entity worldwide.
  • 20%: the market share of petrol sales in the United States owned by the combined entity.
  • 90 years: the time since the US government broke up John D Rockefeller's Standard Oil trust, which is being reassembled through the merger.

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