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ExxonMobil's Market Dominance and Merger

Exxon and Mobil merged in 1999 in an $8 billion deal, forming ExxonMobil which became the largest company in the world by reunifying two 19th century Standard Oil companies. The merger's size required major restructuring of gas stations to avoid monopolization, despite approval. ExxonMobil remains a strong oil market leader with huge international holdings and earnings, showing the merger was a success. Some predict ExxonMobil may merge again following Shell's acquisition of BG Group. San Miguel Corp. acquired a significant stake in Philippine Airlines and its budget carrier for $500 million, partnering with the Lucio Tan group to modernize their fleets. This allows the airlines

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Michelle Manalo Canceran
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192 views2 pages

ExxonMobil's Market Dominance and Merger

Exxon and Mobil merged in 1999 in an $8 billion deal, forming ExxonMobil which became the largest company in the world by reunifying two 19th century Standard Oil companies. The merger's size required major restructuring of gas stations to avoid monopolization, despite approval. ExxonMobil remains a strong oil market leader with huge international holdings and earnings, showing the merger was a success. Some predict ExxonMobil may merge again following Shell's acquisition of BG Group. San Miguel Corp. acquired a significant stake in Philippine Airlines and its budget carrier for $500 million, partnering with the Lucio Tan group to modernize their fleets. This allows the airlines

Uploaded by

Michelle Manalo Canceran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Molina, Phoebe Danielle L.

CBET-01-603A

EXXON & MOBIL


Big oil got even bigger in 1999, when Exxon and Mobil signed an $8 billion
agreement to merge and form ExxonMobil. Not only did it become the largest company in the world,
it reunited it 19th century former selves, John D. Rockefellers Standard Oil Company of New Jersey
(Exxon) and Standard Oil Company of New York (Mobil). The merger was so big, in fact, that the
FTC required a massive restructuring of many of Exxon and Mobils gas station, in order to avoid
outright monopolization despite the FTCs unanimous approval of merger).

ExxonMobil remains the strongest leader in the oil market, with a huge hold
on the international market and dramatic earnings. So was the merger a success? Absolutely. Some
even predict that after Shells recent acquisition of BG Group, that ExxonMobil is about to make yet
another big move in oil by merging again.

SAN MIGUEL CORPORATION & PHILIPPINES AIRLINES

San Miguel Corp. has signed a $500-million deal to acquire a significant


stake in flag carrier Philippine Airlines and affiliate budget carrier Air Philippines Corp., thus
teaming up with the Lucio Tan group for the modernization and re-fleeting of these carriers. In a
statement jointly issued by the Lucio Tan group and SMC, the two groups said this new partnership
would allow the two airlines to strengthen operations and stay competitive with the implementation
of PAL and AirPhils fleet modernization program. SMC president Ramon S. Ang confirmed that
under the deal, SMC will buy into PAL and AirPhil through several layers of holding companies.

For Philippine Airlines, the entry of SMC may enhance its re-fleeting
strategy given the cash-rich balance sheet of the acquiring conglomerate. The airline may also
explore potential strategies with other key assets of SMC such as airport infrastructure and jet fuel
access and pricing through Petron Corp., said Jose Mari Lacson, head of research at local stock
brokerage Campos Lanuza & Co.

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