Wall Street analysts say Chevron merger talks a sideshow before Exxon loss

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Wall Street analysts on Monday gave little credence to the possibility of an Exxon-Chevron mega merger, as news of talks last year between the two largest U.S. oil companies leaked ahead of Exxon's results that are expected to show the company posting its first-ever annual...

FILE PHOTO: The logo of Exxon Mobil Corporation is shown on a monitor above the floor of the New York Stock Exchange in New York, December 30, 2015./File Photo

Shares in both the companies were down in early trading in New York, despite a rising overall market and weekend gains in global crude prices. However, anti-trust concerns and the new U.S. administration’s stance on big mergers make it unlikely that a deal resurfaces, Kapadia said, adding that buying smaller, hard-hit oil companies gives Exxon and Chevron more value.

Exxon’s year-end results scheduled for Tuesday are expected to be marred by a charge of up to $20 billion on the value of its natural gas properties.

 

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