The directors of Exxon Mobil Corp. and Chevron Corp. talked about the merger of the oil giants last year, according to those familiar with the talks, and tested the waters of one of the largest corporate mergers of all time.
Managing Directors Mike Wirth and Exxon
CEO Darren Woods spoke shortly after the outbreak of the coronavirus pandemic, decimated oil and gas demand and put a huge financial strain on both companies. The discussions have been described as tentative and are not ongoing but could happen again in the future, people said.
Such a deal would reunite the two greatest descendants of John D. Rockefeller's Standard Oil monopoly, which was dissolved by US regulators in 1911, and reshape the oil industry.
The market value of a combined company could exceed $ 350 billion. Exxon has a market value of $ 190 billion while Chevrons is $ 164 billion. Together they would likely make the world's second largest oil company by market capitalization and production, producing around 7 million barrels of oil and gas daily based on prepandemic levels, second in both measures after Saudi Aramco.
An expanded version of this report is posted on WSJ.com.
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