Exxon, Chevron CEOs discussed merger in early 2020 - sources

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It would have been the biggest corporate marriage of all time: a $350 billion merger between oil giants ExxonMobil and Chevron. Sources say CEOs of the two oil giants talked in early 2020 about combining their two companies

The discussions, which are no longer active, are indicative of the pressure the energy sector’s most dominant companies faced as the COVID-19 pandemic took hold and crude prices plunged.

Exxon and Chevron’s shares nosedived last year after a Saudi-Russian price war and fallout from the novel coronavirus outbreak caused the value of oil to crater. Exxon’s stock was hit hardest, as investors raised concerns about the company’s long-term profitability and spending decisions. A proposed combination last year would almost certainly have triggered an intense antitrust review by the U.S. Justice Department, a process that typically takes months to complete. And such a review would also potentially have run up against last November’s U.S. presidential election, raising additional uncertainty about how soon such a deal might be cleared, if at all.

Biden recently formally revoked the permit to build the Keystone XL oil pipeline. General Motors last week said it would aim to stop selling vehicles powered by gasoline and diesel, which rely on oil, by 2035.News of the unsuccessful talks emerged as Exxon has come under pressure from some of its shareholders over its strategic direction.

Despite inevitable antitrust concerns, the companies could argue a merger would represent the United States’ best shot at taking on the Saudi state-owned conglomerate and the world’s other largest state-backed oil producers, one of the sources said. Exxon and Chevron, with their powerful balance sheets, withstood turmoil in energy markets following the pandemic that forced some smaller independent oil and gas producers to file for bankruptcy protection.

 

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Bye oil.

Wondering which CEO takes the rudder and the other one gets punted.

We have seen this before: Exxon + Mobile Conoco + Phillips Chevron + Texaco BP + Amaco The fossil fuel industry is slowly dying out. I feel bad for the workers

Standard Oil was broken up for a reason. Perhaps ExxonMobil and Chevron should be broken up even further.

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I remember I in the seventies when Esso merged with Nixon, and became Exon!!!!

These two companies were part of the Standard oil monopoly that was broken up years ago. Why would they be allowed to merge?

Aww you guys can hold hands while the world turns away from oil. At least you got each other ❤️

'We're gettin the band back together.' -Standard Oil

Oil will continue to decline

They won’t get the federal approval. No harm in dreaming though.

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