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Oil Giant Chevron Buys Rival Texaco
US oil giant Chevron says it will buy rival Texaco for about $35bn, in a move that will create the world's fifth largest oil company.
Chevron is the second-largest oil company in the US, and Texaco the third-largest, and their merger will a firm with a combined market value of up to $90bn.
Both companies hope that the deal will create cost savings of $1.2bn, but say it could result in about 4,000 jobs being cut.
The boards of the two companies approved the deal on Sunday, with a formal announcement expected on Monday.
But fears exist that as the merger will leave fewer oil companies competing for customers, the upward pressure on petrol prices will remain long after the current oil crisis has been resolved.
Last week, the price of a barrel of oil was over $35 in London pressured by violence in the Middle East, which raised fears that oil supplies could be interrupted.
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