History is awash with several cases where mergers have actually benefited organizations and created conglomerates which have been seen to capture the market. In the same vein, certain mergers have ended up as flops owing to several challenges and miscalculations that were never addressed in advance. The merger of Exxon and Mobil. The Exxon-Mobil merger was actually effected in 1998 after the Exxon Corporation had agreed to purchase Mobil for an estimated $75 billion (Waller 2010). The merger between these two oil corporations proved to be one of the largest mergers in history. Through the merger, it was envisioned that the operational costs of the corporation would be reduced by over $2.8 billion per year (Hartley 2003). However, the major driving force behind the merger was the need to streamline operations in the oil industry which had been affected by several global events. The series of crises in the Asian countries and the seemingly global decline in the consumption of crude oil had seen the price of the commodity drop to $11 per barrel from an initial figure of $29. At this same time, OPEC was totally unable to control the production of oil by its member countries. As such, several issues, inefficiencies, and challenges were realized in the oil sector across the world.&nbsp. Oil companies were, therefore, experiencing some of their worst moments in operations, and radical measures became imperative. Mergers and acquisitions of oil companies were, therefore, seen as some of the best avenues to create formidable organizations that could effectively sail through the challenges of that time. As a result of the merger in 1999, Exxon Mobil had an estimated $83 billion in a stock transaction with projected annual profits of $8.1 billion (GAO 2004). Since then, the corporation has experienced unprecedented growth, and it’s market share is actually the highest in the oil industry across the world today. The idea of mergers has suddenly taken over the oil industry as it was seen as the only survival strategy against the greatest challenges of the oil sector. In the late 1990s, merger mania was evidenced amongst the major oil companies in the world. As a result of the mergers, the various rankings that hitherto existed in terms of revenues, operations, and profits were radically changed as some of the companies grew in size owing to the joint operations. The whole idea behind mergers and acquisitions in the oil sector was actually a timely affair that helped save many organizations that would otherwise perish due to the challenges in the sector and the inability of the regulatory body to control the operations in the sector. A merger arises when two or more firms choose to merge and conduct their operations as a single entity. In this regard, the shareholders are normally given the chance to acquire shares in the new organization that emerges out of the merger upon the surrender of the old shares. On the other hand, an acquisition occurs when one bigger firm takes over the operations of another firm which is usually smaller. The smaller firm ceases to exist after the acquisition. These two aspects have continued to gain much popularity as can be evidenced by several situations across the world. Exxon Mobil vs. DaimlerChrysler. The merger between Exxon and Mobil was one of the most successful mergers in history. Today, ExxonMobil is certainly one of the largest corporations in the world and one of the most profitable. With annual revenues of over $450 billion, it certainly appears that the decision to merge the two companies was certainly one of the most brilliant ideas in the industry.

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