FX.co ★ ExxonMobil and Chevron may resume merger talks

According to the Wall Street Journal, negotiations between the chief executives of the American oil corporations, ExxonMobil and Chevron, may resume in the near future. Earlier, the two largest US oil producers discussed the possibility of a merger but failed to reach a consensus. Analysts at WSJ believe that in the case of a compromise, this merger deal will be a historic one. The new combined company may become one of the largest in the industry.

Michael Worth, CEO of Chevron, and Darren Woods, head of ExxonMobil, held merger talks in 2020. The negotiations took place at the height of the coronavirus pandemic. Notably, the COVID-19 pandemic triggered a drop in demand for oil and gas, which led to a number of financial difficulties for both companies. Currently, negotiations between the oil giants are suspended but may continue in the near future.

Experts say that the merger of companies could fail again due to possible antitrust measures by the administration of President Joe Biden. The former President, Donald Trump, was more tolerable to the oil industry.

Taking into account the preliminary estimates, the market value of the combined company may exceed $350 billion. The current market value of ExxonMobil is estimated at $190 billion and Chevron at $164 billion. If the companies merge, they will form a conglomerate that will become the second-largest in the world. The first place is held by Saudi Aramco. At the moment, ExxonMobil is the largest private oil company. Oil giant Chevron is considered the second largest among oil and gas companies in the United States.