Exxon-Mobil Merger Sparks Concerns Over Antitrust Implications

Strategic Insights -

Sen. Mike DeWine (R-Ohio), chairman of the Senate Judiciary Committee's antitrust panel, has expressed concerns over the proposed $80 billion merger between Exxon Corp. and Mobil Corp. and the recent news has prompted him to ask the Federal Trade Commission (FTC) to delay and reconsider a decision on the merger of British Petroleum Co. plc and Amoco Corp. DeWine plans to write to the FTC to request a close examination of the Exxon-Mobil proposal, as well as to take another look at the BP-Amoco deal, given the larger potential changes in the oil industry. The senator's concerns stem from the creation of massive companies that could potentially have a significant impact on consumers and markets.

Key Takeaways:

  • Sen. Mike DeWine (R-Ohio) has asked the Federal Trade Commission (FTC) to delay and reconsider a decision on the merger of British Petroleum Co. plc and Amoco Corp. due to concerns over the proposed $80 billion merger between Exxon Corp. and Mobil Corp.
  • DeWine believes the creation of massive companies through mergers could potentially have a significant impact on consumers and markets.
  • The senator plans to write to the FTC to request a close examination of the Exxon-Mobil proposal, as well as to take another look at the BP-Amoco deal.
  • Environmental groups, such as Project Underground, have also expressed concerns over the implications of the merger, citing potential threats to the environment and democracy.
  • The merger could lead to the creation of a company that has the power to explore in remote regions of the world, "no matter what the human or environmental cost."
  • The merged company will have a significant impact on local sovereignty, with some arguing that it will be a "behemoth of this size" that threatens local democracy.

Statistics:

  • The proposed $80 billion merger between Exxon Corp. and Mobil Corp. will create a massive oil company with significant implications for consumers and markets.
  • The merger of British Petroleum Co. plc and Amoco Corp. was announced in August and is still pending review by the FTC.
  • Sen. DeWine's subcommittee has yet to schedule a hearing on the Exxon-Mobil proposed merger.
  • Environmental groups, such as Project Underground, are concerned that the merger could lead to increased exploration in remote regions of the world, potentially harming the environment.

Sources:

  • "Annunciation of Exxon-Mobil Merger Prompts Sen. DeWine to Question FTC on Decision to Approve BP-Amoco Deal," The Oil Daily.
  • Project Underground statement, [4 October 1999].