Abstract

The case discusses the merger of Exxon and Mobil Corporation, the two top leading companies in the US oil industry. The case details the factors that led to the decision of the two companies to merge and the synergies reaped after the merger. The case also examines the positive and negative implications of this mega-merger on the consumers, employees, marketing and retailing intermediaries, and environment, as well as its effect on the overall competition in the industry. Finally, the case discusses the status of ExxonMobil in early 2004 and how it has performed in the past five years since its merger.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Mergers
• Negative side of mega-mergers
• Consolidation in the US oil industry.

Keywords

ExxonMobil Corporation, Merger & Acquisition, Consolidation in US Oil Industry, Negative Side of Mega-mergers, Antitrust Laws, Environmental Conservation, Corporate Irresponsibility, Exxon Valdez Oil Spill