Chevron and Exxon discuss merger after oil prices fell after Kovid’s epidemic last year

A vehicle passes through Exxon Mobil Corp gas station in Arlington, Virginia, USA on Wednesday, April 29, 2020.

Andrew Harrer | Bloomberg Getty Images

Last year, the CEO of Chevron and ExxonMobil discussed the possibility of the merger of the two companies, The Wall Street Journal reported on Sunday, in which unknown people were acquainted with the conversation.

The newspaper reported that Chevron CEO Michael Wirth and Exxon CEO Darren Woods began to negatively affect oil prices following the Kovid-19 epidemic.

According to the journal, the conversation is not ongoing and is initially described. Representatives of both companies declined to comment. The talks were later reported by Reuters.

A merger between Chevron and Exxon would be the largest in history, and would face conflicting scrutiny from President Joe Biden’s Justice Department. Both companies John D. Rockefeller’s Standard derives from oil, which was disbanded by the Supreme Court in 1911.

Chevron has a market cap of $ 164 billion, and Exxon has $ 189 billion, meaning the combined company would be worth $ 350 billion north. The joint firm will be the second largest oil and gas company in the world after Saudi Aramco.

Oil prices have fallen significantly since the catering in March, although they remain somewhat depressed amid concerns about a slower-than-expected vaccine roll out and new coronovirus variants.

– CNBC’s Pippa Stevens contributed to this report.

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