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Article: Increasingly,Size Counts; Falling Prices in a World of Plenty Drive Mergers Such as Exxon-Mobil
- Article from:
- The Washington Post
- Article date:
- December 4, 1998
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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At first look, the $81 billion marriage of the No. 1 and No. 2
U.S. oil companies might imply the kind of concentration of economic
power that sets off alarm bells for consumers and government
regulators.
But the deal this week to combine Exxon Corp. and Mobil Corp.
is more a sign of weakness than of strength, reflecting an
environment of lower prices and intense competition rather than a
world in which giant corporations can dictate terms to their
customers.
The proposed merger -- and many others that have brought the
year-to-date worldwide deal tally to $2.3 trillion -- is as much a
defensive strike as it is an effort to expand and enlarge one
company's territory.
Companies are ...