The CEOs of the American oil and gas companies Chevron and ExxonMobil reportedly held talks about a merger last year. After the pandemic decimated the demand for oil and gas, Mike Wirth of Exxon and Darren Woods of Chevron gathered to discuss the possibilities of joining the forces.
That’s what The Wall Street Journal writes based on insiders. According to the newspaper, the talks between the oil savings were still exploratory in nature. Equally, this could be the beginning of one of the biggest corporate mergers ever.
A deal between Chevron and Exxon would reunite the two greatest descendants of the oil monopoly Standard Oil Of John D. Rockefeller. Standard Oil was just split up by the American regulators in 1911.
The merger could have a combined market value of USD 350 billion. Exxon currently accounts for $ 190 billion, whereas Chevron would be worth $ 164 billion. Together, the companies would probably be the second largest oil group in terms of value and production. Saudi state oil company Saudi Aramco remains the number one.
Similarly, according to the newspaper, a merger could come up against objections in terms of regulation and market power. Especially now that Joe Biden is sworn in as president of the United States. According to the newly-appointed president, climate change is one of the biggest crises facing the country. Biden said earlier that the country should make a “transition away from the oil industry”.