Posts Tagged ‘Merger’

There has been speculation that Exxon MobilCorp., which built up a huge cash pile last year as oil soared to nearly $150 a barrel, might be considering a bid for a rival like Anglo-Dutch major Royal Dutch Shell PLC or the smaller BG Group PLC.

A new wave of mergers is likely to sweep through the oil industry as cash-rich companies such as ExxonMobil eye up smaller rivals - possibly even Shell - after the collapse in the price of crude.

Exxon now has money to burn, a move possible — With $40 billion in cash, Exxon Mobil could be poised to buy out or merge with one of its struggling competitors. Oil giants like Chevron, BP, Royal Dutch Shell, ConocoPhillips and Exxon itself face weak fourth-quarter profits and oil-prices remain depressed, so a major merger or acquisition is possible, analysts say.

Given the likely horror in London and The Hague and the equal dismay in Brussels we can expect some swift defensive manoeuvres to be soon under discussion. Prime amongst these has to be the oft trumpeted merger of Shell and BP into one seriously big and European managed corporation.

The last big oil merger cycle was a decade ago and we are set fair for another bout. The majors have held back - a year ago BP toyed with the idea of courting Shell and Shell has an on-off love affair with BG Group.

There have long been rumours linking Shell with a possible bid for BP or British Gas. ExxonMobil is also thought to have looked at BP.

Lloyds List: Royal Dutch Shell merger voting date fixed

Martyn Wingrove

May 20, 2005

SHAREHOLDERS of Royal Dutch Petroleum and Shell Transport will finally vote on merging the group into one entity next month and benefit from a $3bn-$5bn share buyback programme.

The Anglo-Dutch group is unifying its management and ownership to form Royal Dutch Shell following last year’s oil reserves scandal and after calls from leading shareholders to improve corporate governance.

The previous company went through a rough period last year as it slashed more than a quarter of its booked oil reserves and sacked chairman Philip Watts and its head of exploration and production. read more

Financial Times: Timetable proposed for unified Shell

Posted 20 May 05

By Clay Harris in London

Shares in the unified Royal Dutch Shell will begin trading on July 20 under the timetable announced yesterday by the Dutch-UK oil and gas group.

The schedule was in line with previously outlined proposals to create a single company – incorporated in the UK but with its headquarters in the Hague – after nearly a century of federation between Royal Dutch and Shell Transport and Trading.

The new structure was proposed after a series of reserves restatements in 2004 raised questions about the group’s corporate governance. The plan needs to be approved by shareholders and the UK High Court on June 28. read more