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Exxon and Mobil sign merger agreement

1 December 1998

Exxon and Mobil announced that they have signed a definitive agreement to merge the two companies. Upon completion of the merger, the company's name will be Exxon Mobil Corporation, with headquarters in Irving, Texas.

Exxon is the biggest US oil company and Mobil is the second largest. The merger, valued at a $76.2 billion in a stock transaction, would be the biggest US corporate combination in history and will create the world's largest oil company. The deal would reassemble much of Rockefeller's Standard Oil, which was broken up by the US government in 1911.

Under the terms of the agreement, each share of Mobil will be converted into 1.32015 shares of Exxon. As a result of the merger, Mobil shareholders will own about 30% of the company, while Exxon shareholders will own about 70%.

Exxon Mobil will be led by Exxon Chairman and Chief Executive Lee Raymond, who will hold the posts of chairman, chief executive and president of the new company. Mobil Chairman and Chief Executive Lucio Noto will serve as vice chairman of the board.

Exxon Mobil will continue to use both the Exxon brand and the Mobil brand.

The merger is subject to shareholder and regulatory approval, as well as other customary conditions. It is intended that the merger will qualify as a tax-free reorganization in the United States and that it will be accounted for on a "pooling of interests" basis.




Source: Exxon
Contact: Exxon Media Relations, 972-444-1107; Mobil Media Relations, 703-846-2500