Big oil merger?

sammyg2 · 01-25-2007, 06:21 PM

rumors are flyin that something is in the works that will make the merger between exxon and mobil look medium sized. If true it's international, not just in the US.
No idea if the rumors are true but iffn they are it'll be big.
can't say any more right now.

red-beard · red-beard's Garage

Iran, Kuwait and Saudia Arabia?

sammyg2 · 01-26-2007, 09:45 AM

LOL, nope.
This is about corporations, not countries.

sewell94 · 01-26-2007, 09:53 AM

Ford and Chevy?? i thought it was funny when that crossed through my head, lol

sammyg2 · 01-26-2007, 10:01 AM

Looks like th4e cat is out of the bag so I can talk about it now:
http://www.mg.co.za/articlePage.aspx?area=/insight/insight__economy__business/&articleid=287960

M.D. Holloway · 01-26-2007, 10:07 AM

Thats been in the works for a few years now. I thought you were talking about the Chinese / Russian / South American venture that is being developed.

sammyg2 · 01-26-2007, 01:19 PM

The rumor has been floating around for quite a while but it was systematically dismissed as folly until last week.
Things are happening now that indicate it may have some basis in fact. Two shell refineries in California are rumored to be in the process of changing hands, and coincidentally they are in very close proximity to BP refineries. Based on past experience the politicos on Kalifornia will not allow a company to have two refineries in a region so one usually gets spun off. Of of the rumored buyers also has a refinery in the bay area and there is talk that it will be sold off and replaced by the shell refinery down the road which is in better shape and has more capacity.

At at least one of the shell refineries they have been drilling and taking dirt core samples to test for contamination, another possible sign of a sale pending. No buyer will close escrow without environmental studies.
Shell is trying to gobble up the remaining shares of their interests in Canada, I can find no logical explanation for that at this time unless it has something to do with a merger.
In the past few weeks shell has anounced the sale or intended sale of several refineries in western europe, they are also in close proximity to BP refineries.

If it isn't happening it's a heck of a coink-idink.

Disclaimer: I own stock in one or more of the corporations mentioned.

legion · 01-26-2007, 07:55 PM

I've said it before, I'll say it again. Most recent big mergers have been disasters for consumer and investors alike. DaimlerChrysler, Citi + Travelers, HP + Compaq, etc. ExxonMobile has been a disaster for consumers. How is having one oil company a good thing?

david914 · 01-26-2007, 09:02 PM

Quote:

Originally posted by legion
...How is having one oil company a good thing?

It's not...

sammyg2 · 01-27-2007, 06:51 AM

a merger is usually a very good thing, if you own the corporation or at least part of it.
A merger is supposed to make a corporation more efficient. It reduces duplication of efforts, often referred to by cliche-spewing managers as "synergies".

The only time a merger doesn't work is if the two companies are poorly run (as in chrysler) or too different to combine well.

The merger of exxon and mobil was not a disaster for consumers. It had little or no effect on consumers. Period. the recent run up in prices had absolutely nothing to do with the merger.
I challenge you to provide any real evidence to the contrary.