Exxon to acquire Mobil

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Exxon Corp., Irving, Texas, announced this afternoon on Wall Street that it plans to acquire Mobil Corp., Fairfax, Va., for $80.1 billion. Executives said the deal would create $2.8 billion in synergies, including cost savings, within three years of the merger. The new company would be called Exxon Mobil Corp., and both brands would be retained.

A live teleconference didn't address by deadline how the deal may affect the companies' agencies. McCann-Erickson Worldwide, Houston, handles Exxon, and Bright Sun Consulting, New York, does Exxon project work. Mobil's stable has DDB Needham Worldwide, New York; Arnold Communications, Boston; Ornelas & Associates, Dallas; and Burrell Communications Group, Chicago.

Exxon and Mobil join a recent string of oil mergers. Texaco, White Plains, N.Y., and Shell Oil Co., Houston, have combined; Amoco Corp., Chicago, and British Petroleum, London, are in the process of doing so. Separately in Europe today, French oil company Total SA announced plans to acquire Belgium's PetroFina.

Copyright December 1998, Crain Communications Inc.

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