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Exxon Mobil Merger

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Mergers and Acquisition: Exxon Mobil Merger

Introduction
Industry mergers or business combinations are a phenomenon that has been commonplace for quite some time now. They basically involve two or more organizations coming together to form a large corporate under which they operate. The new organization which may have a combination of the names of the merging components or a totally new name operates as a new entity. The new rule under which the new entity operates depends in the agreement on the terms of the merger. As stated in our advanced accounting text, the history of mergers can be traced back to the 1895 to 1905 period in the US when the small companies with small market shares combined forces to form larger entities that dominated the target markets. In this way their collective value accounted for 20% of the total GDP (Cartwright & Schoenberg, 2006, p 3). Since then mergers have remained a popular way of market consolidation and strengthening of the capital base of the various firms involved. The rise of globalization in the 1990s further increased the market for international mergers with firms located in different countries and continents coming together. These mergers have resulted in huge conglomerates across borders with multibillion dollar financial bases and thousands of international shareholders. This paper sets to discuss Exxon Mobil merger with special emphasis on the reason why they merged, type of combination they adopted, terms of the acquisition, and updates after the acquisition.
The Exxon-Mobil Merger Exxon and Mobil were the two top leading companies in the US oil industry before they merged; therefore, the merger that took place between them falls into a broad category known as a Horizontal combination. Our text states that this is where two

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