Merger Analysis Paper

1209 WordsJul 15, 20185 Pages
Merger Analysis Paper Exxon Mobil Corporation, formerly named Exxon Corporation, was incorporated in the State of New Jersey in 1882. On November 30, 1999, Mobil Corporation became a wholly-owned subsidiary of Exxon Corporation, and Exxon changed its name to ExxonMobil Corporation. ExxonMobil Corporation has several divisions and hundreds of affiliates, many with names that include ExxonMobil, Exxon, Esso or Mobil. ExxonMobil is the one of world's largest integrated oil company. Exxon Mobil engages in oil and gas exploration, production, supply, transportation, and marketing around the world. It has proved reserves of 21.2 billion barrels of oil equivalent. ExxonMobil's 45 refineries in 25 countries have a capacity of producing 6.3…show more content…
This type of mergers has resulted in a multitude of success with various organizations, but with the benefits there are also cons. Horizontal mergers have pros and cons on the organizations effected. The merger between Exxon Corporation and Mobil Corporation resulted in pros as well as cons upon finalization. It is evident that when Exxon Corporation and Mobil Corporation decided to unite it was due to the many benefits that it had on both organizations. The merge of Exxon and Mobile achieved a greater economy of scale as the union resulted in increased sales within a larger geographic expansion. This decision also allowed Exxon Mobile to have a magnified presence or power within the oil industry. Along with the benefits are disadvantages that merging two organizations can have (Horizontal Integration, 2007). This merger could have resulted with negative results which would have threatened the value and reputation of the newly established organization. A merger such as this could conclude with a bad public reaction causing the organization to lose their customer base. Many times the public shows loyalty with the organization, product, and service they choose to associate themselves with. When the organization is altered due to a merger or acquisition, the public can then correlate this act with a change and feel the organization they dealt with initially has altered in some way. Another negative
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