Nobody downloaded yet

Mergers and Aquisitions of ExxonMobil Company - Term Paper Example

Comments (1) Cite this document
This term paper focused on Mergers and Aquisitions of ExxonMobil Company. The global corporate world is inundated with myriad challenges to the market players. It appears that strategies must always be put into place in order to address the situation and outdo the competitors…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.2% of users find it useful
Mergers and Aquisitions of ExxonMobil Company
Read TextPreview

Extract of sample "Mergers and Aquisitions of ExxonMobil Company"

Download file to see previous pages History is awash with several cases where mergers have actually benefited organizations and created conglomerates which have been seen to capture the market. In the same vein, certain mergers have ended up as flops owing to several challenges and miscalculations that were never addressed in advance. The merger of Exxon and Mobil. The Exxon-Mobil merger was actually effected in 1998 after the Exxon Corporation had agreed to purchase Mobil for an estimated $75 billion (Waller 2010). The merger between these two oil corporations proved to be one of the largest mergers in history. Through the merger, it was envisioned that the operational costs of the corporation would be reduced by over $2.8 billion per year (Hartley 2003). However, the major driving force behind the merger was the need to streamline operations in the oil industry which had been affected by several global events. The series of crises in the Asian countries and the seemingly global decline in the consumption of crude oil had seen the price of the commodity drop to $11 per barrel from an initial figure of $29. At this same time, OPEC was totally unable to control the production of oil by its member countries. As such, several issues, inefficiencies, and challenges were realized in the oil sector across the world.  Oil companies were, therefore, experiencing some of their worst moments in operations, and radical measures became imperative. Mergers and acquisitions of oil companies were, therefore, seen as some of the best avenues to create formidable organizations that could effectively sail through the challenges of that time. As a result of the merger in 1999, Exxon Mobil had an estimated $83 billion in a stock transaction with projected annual profits of $8.1 billion (GAO 2004). Since then, the corporation has experienced unprecedented growth, and it's market share is actually the highest in the oil industry across the world today. The idea of mergers has suddenly taken over the oil industry as it was seen as the only survival strategy against the greatest challenges of the oil sector. In the late 1990s, merger mania was evidenced amongst the major oil companies in the world. As a result of the mergers, the various rankings that hitherto existed in terms of revenues, operations, and profits were radically changed as some of the companies grew in size owing to the joint operations. The whole idea behind mergers and acquisitions in the oil sector was actually a timely affair that helped save many organizations that would otherwise perish due to the challenges in the sector and the inability of the regulatory body to control the operations in the sector. A merger arises when two or more firms choose to merge and conduct their operations as a single entity. In this regard, the shareholders are normally given the chance to acquire shares in the new organization that emerges out of the merger upon the surrender of the old shares. On the other hand, an acquisition occurs when one bigger firm takes over the operations of another firm which is usually smaller. The smaller firm ceases to exist after the acquisition. These two aspects have continued to gain much popularity as can be evidenced by several situations across the world. Exxon Mobil vs. DaimlerChrysler. The merger between Exxon and Mobil was one of the most successful mergers in history. Today, ExxonMobil is certainly one of the largest corporations in the world and one of the most profitable. With annual revenues of over $450 billion, it certainly appears that the decision to merge the two companies was certainly one of the most brilliant ideas in the industry. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Economic Regulation Paper: ExxonMobil Company Term Paper”, n.d.)
Retrieved from
(Economic Regulation Paper: ExxonMobil Company Term Paper)
“Economic Regulation Paper: ExxonMobil Company Term Paper”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
christian47 added comment 2 months ago
Student rated this paper as
Great paper! Used it to finish an assignment for a business course. It was easy as ABC, for the first time in my life.

CHECK THESE SAMPLES OF Mergers and Aquisitions of ExxonMobil Company

ExxonMobil - Future potential

...………………………………………………………………… 10 4.4 Buyer Power ……………………………………………………………… 11 4.5 Threat of Substitutes ……………………………………………………… 11 5.0 Conclusion ………………………………………………………………………. 12 References ………………………………………………………………………… 13 Executive Summary There is no doubt pertaining to the fact that ExxonMobil happens to be the biggest publicly traded company in the world that deals in oil and natural gas. The recommendations extended in this report directly ensue from varied facts and factors like the number one position of ExxonMobil in the oil and natural gas sector, the immense growth potential of ExxonMobil and the steps being taken by the company to extend its business...
12 Pages(3000 words)Essay

Assignment of Mergers & Aquisitions

...that for mergers or acquisitions it is necessary to find the economic value of the asset that is being brought or sold. By the economic value of the asset it means the “total economic environment associated with the asset, the potential use of the asset, timing of the value estimate, location of the asset, extent of ownership involved.” (2001). Financial Institutions, valuations, mergers and acquisitions: the fair…. By Zabihollah Rezaee, p 165. The CAPM, the ICAPM, and the Multifactor Model are the three different model used to estimate the cost of equity in the circumstance of merger and acquisitions. There are various factors which affect the merger and acquisitions of...
10 Pages(2500 words)Assignment

ExxonMobil Corporation

.... Unlike some of its foreign competitors, ExxonMobil is constrained by economic sanctions that ban it from doing business with some of the world's largest oil states, including Iran. Another major challenge will appear in the form of a possible merger between two British super-majors, Royal Dutch Shell (RDS) and BP (BP). The merger may pose a serious threat to Exxon's position as the largest super-major. In an industry where economy of scale, diversified holdings, and extensive infrastructure are all hugely important, a combined BP-Shell could dethrone Exxon. SWOT Analysis A SWOT Analysis is conducted to scan the internal and external environment that surrounds a...
16 Pages(4000 words)Research Paper


...and the communities it serves. Tata Steel aspires to become a 50 Million tonne Steel Company by 2015. Corus was formed on 6th October 1999 through the merger of British Steel and Koninklijke Hoogovens. Corus was the 2nd largest producer of Steel in Europe. The Bidding War... It was little hard for TATA Steel to swallow Corus as CSN, a Brazilian company was also in the race. The bidding war between Tata Steel and Brazilian company CSN was riveting and ended in a rapid-fire auction. Initial reactions to the deal are highly diverse and retail investors are completely puzzled by the market reaction. Managing Finance for the deal TATA Steel had announced the refinancing...
5 Pages(1250 words)Case Study

Mergers and aquisitions in the USA banking

...of the study; Primary data has not been collected in this thesis. The entire thesis is based on the secondary data collected through various sources. As the thesis is a student study, lack of finances has been a significant constraint. The research study had to be completed within a certain period thus; the time factor has also been a noteworthy check. 3.0 Literature Review Mergers can be defined as the, “pooling by firms of their separate interests into newly-constituted business, each party participating on roughly equal terms”. It can also be said that a merger occurs when, “… two firms agree to form a new...
12 Pages(3000 words)Dissertation

Aquisitions and Payments

.... However, when using double- declining method and paying fewer taxes in initial years of useful life of asset, the company will have to make provisions for deferred taxation. Part Two The effects on cash reconciliation while framing Bank Reconciliation statement would be as under: The bank balance will be increased by $ 1800 as the mistake is at the end of the bank. The book balance will be increased by $180 ($530- $350), as earlier bank balance was wrongly reduced by $180 when amount was deposited into bank. No adjustment is required as bank recorded the correct amount of deposit. The book balance will be increased by $ 30 as bank cleared cheque wrongly for the lesser amount than as was written on the cheque. The book...
5 Pages(1250 words)Essay


.... But the thing of concern is, the share holder’s equity has reduced by 7.22%. This indicates the investors’ sentiment toward the company’s new polices taken by the top management. Table-1: Changes happened in the ExxonMobil during the year 2007-2008 2008 2007 % change Sale 459579 390328 17.74175 Net Income 45220 40610 11.35188 Research& Development 847 814 4.054054 Total Assets 228052 241082 -5.4048 Total Debt 9425 9566 -1.47397 Share holders Equity 112965 121762 -7.22475 Company history The company known as ExxonMobil was formed by merger of two major oil companies called Exxon and Mobil in the year 1999. Both of these...
13 Pages(3250 words)Essay


...Due Mergers As companies look for the best methods of attaining growth, one of the strategies proposed of attaining shareholders’ value has been involving Mergers and Acquisition procedures. Studies show that since 2004, these procedures have increased significantly by over 50 percent. Though the method has been employed by many companies around the world, it has been reported that half of these companies fail to achieve their goals of merging. To avoid these failures, companies have been advised to observe best planning methods before engaging in the business. Mergers are part of reforming a business which involve two...
2 Pages(500 words)Essay

Business Aquisitions

...the firm an opportunity of employing the proficient resources available with the enterprise. The present decision is in accordance to this tactic as it will make sure that the company has access to those sources which were unavailable with the firm. Also, it will allow the resulting corporation to gain leading position within the industry. In addition to the capital sources, the company will have access to the competent management team and employees who will be able to share their international business experience. Moreover, CEO will be able to capture a huge market share in the respective industry. Conclusion As the latest trend in the corporate world is of Mergers and...
2 Pages(500 words)Essay


...The Board has agreed to merge with a one branch $50M credit union located in another My approach is to assess the strategic and financial value of the potential merger. My approach will be conscious of potential strategic value to "company” in the form of; positioning through broader market access and increasing organizational competencies. Additionally financial value can be realized from an undervalued merger opportunity and/or through centralization and economies of scale. Market Analysis: Community: During due diligence, the community would be an important component of the market analysis. The market analysis would be conducted by reviewing the competitors within a 20 mile...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Term Paper on topic Mergers and Aquisitions of ExxonMobil Company for FREE!

Contact Us