Essay about Exxonmobil Study

1654 Words Nov 13th, 2012 7 Pages
Exxon Mobil

• Multinacional americana

• ExxonMobil is the largest non-government owned company in the energy industry and produces about 3 percent of the world's oil and about 2 percent of the world's energy

• Resultado de la fusión de Exxon y Mobil en 1998, en un acuerdo de US$ 73.7 billones

• Ambas empresas son descendentes de histórica Standard Oil, fundada en 1870 por John D. Rockefeller

• Marcas:

o Exxon

o Mobil

o Esso

• Casa Matriz: Irving, Texas

• Divisiones:

o Upstream (extracción)

o Downstream (refinación)

o Chemical

o Salió del negocio de distribución en 2008 para enfocarse en los otros negocios.

o Las estaciones de servicio siguen
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Liquidity ratios definitely show that both companies were financially stable, but Exxon was in a better situation than Mobil. The Exxon’scurrent and quick ratios (0.57 and 0.91 correspondingly) were higher than the Mobil’s (0.48 and 0.67 correspondingly) and merged company had significantly improved these results. Ratio of net current assets as a % of total assets (i.e. working capital to total assets) was distorted after the merger (1.48) probably due to large divestitures that followed the deal.

Solvency status of companies also looked good. Though Exxon again showed its financial supremacy with much higher interest coverage ratio (93.41 compared to Mobil’s 7.78) Generally speaking the better interest coverage ratio means less risk but also might be bad for future performance because of the failure of the management to use additional funds for development. Debt to equity ratio was safe and stable in both companies.

Combined company showed even superior results after the merger, which proved the correlation between positive market reaction on the announcement event and success of the merger.

[edit]Deal structure
Under the merger agreement, an Exxon subsidiary would merge into Mobil so that Mobil becomes a wholly owned subsidiary of Exxon Mobil. As a result, Exxon would hold 100% of Mobil’s issued and outstanding voting securities. Holders of Mobil common stock would
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