About the Exxon - Mobil merger

Exxon's purchase of Mobil also showed a harsh reality: Some 9,000 jobs world-wide will be lost.
Exxon agreed to acquire Mobil for $ 73.7 bn in stock, combining the biggest U.S. oil companies and reuniting two of the biggest pieces left by the 1911 government break-up of John D. Rockefeller's Standard Oil empire.
The new Exxon Mobil Corp. is the latest example of rapid consolidation in the oil industry, where profits have been battered by a deep price slump caused by world-wide overproduction and weak demand.
"We need to face some facts. The world has changed," Mobil chairman Lucio Noto said. "The easy things are behind us."

Exxon and Mobil expect that together they will be able to save $ 2.8 bn annually, much of that coming from eliminating overlapping businesses and workers.
The projected job cuts would equal about 7 % of the companies' world-wide work force.

Company executives expect that federal antitrust regulators will force them to sell some assets, which could include gasstations in the Northeast and shed stations and refineries in the Southwest and West.
But most analysts don't believe that concerns about market dominance will be strong enough to kill the deal. Together, Exxon and Mobil account for about 13.5 % of U.S. gasoline sales, but just 4 % of global oil production capacity.

The new Exxon Mobil will surpass Shell as the world's No. 1 energy company and General Motors as the largest corporation in the world, with $ 203 bn in combined revenue last year. Exxon is about twice Mobil's size in annual revenue.
Exxon Mobil will have about 48,500 gas stations around the world, with roughly a third in the United States, plus exploration and production operations world-wide. On a daily basis, the companies together produce 2.5 mm barrels of oil and equivalent amounts of natural gas-more than Kuwait.

The companies' well-known gas station brand names, along with the Exxon tiger and Mobil's red Pegasus, will be retained.
The deal tops BP's planned $ 57.1 bn purchase of Amoco as the largest industrial merger.
On the heels of the BP-Amoco and Exxon-Mobil deals, analysts expect smaller oil companies to continue merging and major players such as Texaco, Chevron, Unocal and Arco to eventually find partners.