chevron and texaco to merge news briefs :
chevron and texaco agree to $ 100 billion merger
chevron corp . and texaco inc . announced plans to merge and chevrontexaco
corp .
in the merger , texaco shareholders will receive 0 . 77 shares of chevron
common stock for each share of texaco common stock they own , and chevron
shareholders will retain their existing shares . the exchange ratio
represents approximately $ 64 . 87 per texaco share based on chevron ' s closing
stock price of $ 84 . 25 on october 13 . the exchange ratio represents an 18 %
premium based upon texaco ' s closing share price on october 13 , and a 25 %
premium based upon the two companies ' average relative share prices during
the 30 - day period through october 13 . as a result of the merger , chevron
shareholders will own approximately 61 % of the combined equity , and texaco
shareholders will own about 39 % . the combined company would have an
enterprise value of more than $ 100 billion .
the new company will have reserves of 11 . 2 billion barrels of oil equivalent
( boe ) , daily production of 2 . 7 million boe , assets of $ 77 billion , and
operations throughout the world . in the u . s . , chevrontexaco would be the
nation ' s third largest producer of oil and gas , with production of 1 . 1
million boe per day , and hold the nation ' s third largest reserve position ,
with 4 . 2 billion boe of proved reserves .