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| Last updated at: (Beijing Time) Monday, November 19, 2001 |
Phillips and Conoco Sign Pact to Merge |
Phillips Petroleum Co. and Conoco Inc. are merging in a $35 billion deal that will create the third largest integrated oil company in the United States, the companies announced on Sunday.
The merger would create a corporation with more than $60 billion in assets. The deal, expected to close during the second half of 2002, is subject to regulatory and shareholder approval.
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Phillips Petroleum Co. and Conoco Inc. are merging in a $35 billion deal that will create the third largest integrated oil company in the United States, the companies announced on Sunday.
The merger would create a corporation with more than $60 billion in assets. The deal, expected to close during the second half of 2002, is subject to regulatory and shareholder approval.
The new company will also assume $18.6 billion in debt and preferred securities.
The combined company, to be called ConocoPhillips, would be based in Houston, home to Conoco. It would keep a reduced presence in Bartlesville, where Phillips employs 2,400 at its headquarters and research facility.
Phillips Chairman James Mulva will be chief executive officer and president of the new company and become chairman when Dunham retires in 2004.
ConocoPhillips would be the nation's third-biggest oil and gas company in terms of production and the fifth-largest refiner in the world. The two have combined employment of 58,000 worldwide and expect to save at least $750 million a year by merging.
Under the terms of the deal, Phillips shareholders will get one share of each of ConocoPhillips stock for each Phillips share they own. Conoco shareholders will get .4677 shares of the new stock.
The merger should result cost savings in refining, marketing and transportation and more capital to fund worldwide exploration and production.
Merger talks began in earnest about six weeks ago, Dunham said. Both have been rumored merger candidates for years.
Phillips is a familiar face to motorists in the United States with its Phillips 66 logo. The company has more than 5 billion barrels of oil in reserve.
The deal comes on the heels of several big energy mergers. In September, the Federal Trade Commission approved Chevron Corp.'s acquisition of Texaco Inc. Other deals include BP Amoco's takeover of Atlantic Richfield Corp. in 1999 and Exxon Corp.'s acquisition of Mobil Corp., as the world's largest oil companies look for size and breadth to gain a competitive edge.
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