Posted 21 April 2017 - 12:22 AM
1998 to 2000
In 1998, Exxon and Mobil signed a US$73.7 billion merger agreement forming a new company called Exxon Mobil Corp. (ExxonMobil), the largest oil company and the third largest company in the world. This was the largest corporate merger that time. At the time of the merge, Exxon was the world's largest energy company while Mobil was the second largest oil and gas company in the United States. The merger announcement followed shortly after merger of British Petroleum and Amoco which was the largest industrial merger that time. Formally, Mobil was bought by Exxon. Mobil's shareholders received 1.32 Exxon's share for each Mobil's share. As a result, the former Mobil's shareholders receives about 30% in the merged company while the stake of former Exxon's shareholders was about 70%. The head of Exxon Lee Raymond remained the chairman and chief executive of the new company and Mobil chief executive Lucio Noto became vice-chairman. The merger of Exxon and Mobil was unique in American history because it reunited the two largest companies of Standard Oil trust.
The merger was approved by the European Commission on September 29, 1999, and by the United States Federal Trade Commission on November 30, 1999. As a condition for the Exxon and Mobil merger, the European Commission ordered to dissolve the Mobil's partnership with BP, as also to sell its stake in Aral. As a result, BP acquired all fuels assets, two base oil plants, and a substantial part of the joint venture's finished lubricants business, while ExxonMobil acquired other base oil plants and a part of the finished lubricants business. The stake in Aral was sold to Vega Oel, later acquired by BP. The European Commission also demanded divesting of Mobil's MEGAS and Exxon's 25% stake in the German gas transmission company Thyssengas. MEGAS was acquired by Duke Energy and the stake in Thyssengas was acquired by RWE. The company also divested Exxon's aviation fuel business to BP and Mobil's certain pipeline capacity servicing Gatwick Airport. The Federal Trade Commission required to sell 2,431 gas stations in the Northeast and Mid-Atlantic (1,740), California (360), Texas (319), and Guam (12). In addition, ExxonMobil should sell its Benicia Refinery in California, terminal operations in Boston, the Washington, D.C. area and Guam, interest in the Colonial pipeline, Mobil's interest in the Trans-Alaska Pipeline System, Exxon's jet turbine oil business, and give-up the option to buy Tosco Corporation gas stations. The Benicia Refinery and 340 Exxon-branded stations in California were bought by Valero Energy Corporation in 2000.
Exxon never should have been allowed to merge w/ Mobil.
Who was running the Commerce and Treasury depts at that time?
"I am a most unhappy man.
I have unwittingly ruined my country.
A great industrial nation is controlled by its system of credit.
Our system of credit is concentrated.
The growth of the nation, therefore, and all our activities,
are in the hands of a few men.
We have come to be one of the worst ruled,
one of the most completely controlled
and dominated Governments in the civilized world,
no longer a Government by free opinion,
no longer a Government by conviction
and the vote of the majority,
but a Government by the opinion and duress
of a small group of dominant men."
- Woodrow Wilson reflecting upon signing the Federal Reserve Act.
Free Book "The Creature From Jekyll Island" about the Fed.