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Exxon and Mobil merger approved by the US government

1 December 1999

Exxon Corporation and Mobil Corporation confirmed that the US Federal Trade Commission (FTC) has approved a consent order for the $82 billion merger of the two companies. Exxon and Mobil have accepted terms and conditions specified by the FTC.

Exxon Chairman Lee Raymond said, "The FTC's decision, coupled with the European Commission's approval gained earlier, cleared the way for the merger to proceed. Exxon and Mobil moved quickly to close the transaction and to launch the world's premier petroleum and petrochemical company, which will be known as Exxon Mobil Corporation". Exxon Mobil Corporation is incorporated in the state of New Jersey.

FTC conditions Exxon Mobil will satisfy to complete the merger include:

Exxon Mobil Corporation will have nine months to satisfy most of the FTC's conditions everywhere except California, where it will have twelve months to sell the Benicia Refinery and the California marketing assets. During that time, Exxon Mobil Corporation will hold various businesses separate from management and operation of the newly merged company.

Except for Exxon and Mobil operations that will be divested, the held separate businesses will become part of the ExxonMobil organization when FTC conditions related to these businesses are met. Revenues and earnings from businesses "held separate" will be consolidated in the Exxon Mobil Corporation financial statements.

The held separate businesses are:

Raymond estimated about 9,000 jobs, out of the total of 123,000 Exxon Mobil employees, will be eliminated. "We regret the uncertainties these divestments may cause to customers and employees. We are convinced, however, that the incentives for this merger remain strong," Raymond said.

Source: Exxon Mobil