The discussions point to the pressure that large companies in the energy sector were facing as a result of the economic impact of the pandemic.
ExxonMobil and Chevron CEOs Darren Woods and Mike Wirth held preliminary talks in early 2020 about the possible merger of their companies into what would have become one of the largest corporate mergers in historyThe Wall Street Journal reported that it named people familiar with the matter.
The discussion began after the coronavirus outbreak decimated demand for oil and gas enormous financial pressure in both companies. The shares of the two companies plummeted and the effects of the pandemic caused the value of the oil to plummet.
The agreement that would reform the oil industry is currently under discussion they are not ongoingBut they could come back in the future, the US newspaper’s sources say.
The market value of a combined company could exceed $ 350 billion. Probably together would form the world’s second largest oil company by market capitalization and production, second only to Saudi Aramco.
However, the possible merger could be faced regulatory and antitrust challenges in the North American country. In addition, some US lawmakers blame Big Oil for contributing to climate change, an issue that has made the new administration one of its priorities.