Exxon, Mobil Shareholders Approve Merger

Shareholders of Exxon Corp. and Mobil Corp. in separate votes overwhelmingly approved Exxon's $82-billion acquisition of Mobil, the largest takeover in history. Regulators in the United States and Europe must still approve the merger, which company executives said they expect by October. Analysts said the combination, which will form the world's largest energy company, shouldn't increase prices at gas pumps. Exxon Chairman Lee R. Raymond said the new company, Exxon Mobil Corp., will be more cost-efficient--cutting costs by $2.8 billion--and better able to compete with international competitors, including state-run oil companies, than would either Exxon or Mobil alone. The companies predicted that the merger will result in the loss of 9,000 jobs--7% of their combined worldwide work force--but admitted that's just an estimate. The new company will have headquarters in Irving, Texas, Exxon's current home. Mobil is based in Fairfax, Va.

At Exxon's meeting, environmental activists angry over climate change issues and the aftermath of the Exxon Valdez oil spill in Alaska 10 years ago, took up much of the floor time available to shareholders. But shareholders of Exxon and Mobil easily defeated environmental motions at their separate annual meetings in Dallas.

Chevron Corp. and Texaco Inc. are also discussing a merger, but sources close to the talks said the negotiations are bogging down over a number of issues, including control of the combined company.