Exxon Mobil Corp senior executives spoke. and Chevron Corp. last year on the merger of the oil giants, according to people familiar with the talks, tested the waters for what could be one of the largest corporate unions. never.
Chevron CVX,
CEO Mike Wirth and Exxon XOM,
Chief executive Darren Woods spoke shortly after the outbreak of the coronavirus epidemic, reducing oil and gas demand and putting significant financial pressure on both companies, the people said. It was said that the talks were initial and are not ongoing but could return in the future, the people said.
Such a treaty would reunite the two largest descendants of John D. Rockefeller ‘s General Oil monopoly, which was broken up by U.S. rulers in 1911, and reshape the oil industry.
The market value of a merged company could exceed $ 350 billion. Exxon has a market value of $ 190 billion, and Chevron has $ 164 billion. Together, they are likely to be the second largest oil company in the world with market capitalization and production, producing around 7 million barrels of oil and gas per day, based on pre-pandemic levels, the second only in both dimensions to Saudi Aramco.
An extended version of this report appears on WSJ.com.
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