Company Analysis : Vacuum Oil Company

1243 Words Dec 9th, 2014 5 Pages
History
In 1966, Vacuum Oil Company, which was founded in 1866, changed its name to Mobil Oil Corporation and began an extensive advertising campaign to accentuate the name “Mobil.” In 1972, the company previously known as Jersey Standard, which was one of the companies established in 1911 as a result of the US Supreme Court decision to break up Standard Oil Company into 34 unrelated companies, changed its name to Exxon Corporation during a shareholders’ meeting (ExxonMobil).

The Merger of Exxon and Mobil Recognizing the need for a large presence in other regions with high potential for gas and oil discoveries, in an effort to become more effective in the global gas and oil competition, Exxon and Mobil merged to form Exxon Mobil Corporation, on November 30, 1999. Under the contract, Mobil would become a wholly owned subsidiary of ExxonMobil and Exxon would hold 100 percent of Mobil’s voting securities. Common stock holders of Mobil would receive 1.32015 shares of Exxon common stock for each share of Mobil common stock. As a result of efficiencies of scale, sharing best management practices, and cost savings, management realized that the merged company could more profitably use its capital than either company on its own. Exxon and Mobil were each very compatible in key areas. For example, as it related to exploration and production, both the strength of Mobil and Exxon in West Africa, South America, North America, Russia coincided with minimal redundancy. In…
Open Document