ChevronTexaco pays big bucks for rival
RAMON, Calif. (April 6, 2005) — ChevronTexaco Corp., America’s second biggest oil company, is buying rival Unocal Corp., the ninth biggest U.S. oil and gas exploration and production firm, for about $16.4 billion in cash and stock.
Under the deal, ChevronTexaco would also assume $1.6 billion of debt. The acquisition, which is subject to approval by Unocal shareholders and certain regulatory agencies, is expected to be completed in six months.
This would be the largest takeover in the U.S. oil sector in years — coming as crude oil futures hit record levels; these levels, when adjusted for inflation, are lower than peaks reached in the 1980s.
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