Question

explain the factors and reasons behind the merger of Exxon-mobil?

Answer 1

The main factors and reasons behind the merger of Exxon-mobil are as follows:

1. The industry dynamics laid a platform for the merger including technological changes, oil price shocks, globalization, competition, evolving financial markets to evolving entrepreneurial motivations.

2.   Increase footprint: By combining complementary assets, Exxon-Mobil would have a stronger presence in the regions of the world with the highest potential for future oil and gas discoveries.

3. Scope of increased capex: The combined company would also be in a better position to invest in programs involving large outlays with high prospective risks and returns.

4. Exploit Synergies: Complementary exploration and production operations of Exxon’s with Mobil’s bring about increased operating synergies, elminating duplicate facilities and reduced the combined administrative costs including application of best business practices across their worldwide operations of both companies as a result of merger.