What is merger?

• Merger: [noun] The combination of entities

from two to one
The Exxon-Mobil
Merger
 Outline
• 1. History of ExxonMobil
• 2. Reasons of the merger
• 3. Managing change
• 4. Benefits
• 5. Merger impact
History of ExxonMobil
November, 30, 1999
 Headquarters
• Jersey • Socony ("Standard Oil
Standard ("Standard Oil Co. of New York")
Co. of New Jersey") • Mobil
• EXXON

Irving,Texas, United States

 Reasons
• Stronger position
• Strategical position to invest in
businesses
• Technical capabilities will complement
each other’s operations
• Increase scale of economies
Positions
 Managing Change

EXXON Mobil
• Finance and • Marketing and deal-
engineering making
• Rigid • More relaxed
• Independent • Accessible
• Slow decision • Good at PR
making process • Took big risks
Managing Change
 Organizational strategy of ExxonMobil

• Building intercultural bridges

• Establishing the sense of urgency
• Developing a change vision and
strategy
• Empowering the employees
•
 Benenefits
• 2/3 from omitting duplicate facilities
and excess capacity
• Applying each company’s best business
practices
ExxonMobil Merger Impact
ExxonMobil Stock Price
Thank you for your attention!
 References
1. Cooper, Christopher, and Steve Liesman, "Exxon Agrees to Buy Mobil for
$75.3 Billion,“ Wall Street Journal, December 2, 1998, p. A3.

2. Weston, J. Fred (2002): 'The Exxon-Mobil Merger: An Archetype',

Forthcoming Journal of Applied Finance, Financial Management
Association, 3-45

3. Zhang, H., Demir, U., and Wang, Q. 2010. Managing Investment Group
Report,http://www.ugurdemir.info. [17 November 2010]

4. Google, 2010. ExxonMobil versus S&P 500 Stock Exchange

Index,http://www.google.com/finance [18 November 2010]

5. ExxonMobil Corporation (2000): 2000 Financial and Operating Review,

Texas :ExxonMobil Corporation Investor Relations

6. Eugene F. Brigham & Michael C. Ehrhardt (2005) : Financial Management

Theory and Practice, 11 th edition, Ohio: South Western