Chevron and Exxon discussed merger last year after Covid pandemic devastated oil costs, reports say

A automobile passes an Exxon Mobil Corp. fuel station in Arlington, Virginia, U.S., on Wednesday, April 29, 2020.

Andrew Harrer | Bloomberg | Getty Images

The CEOs of Chevron and ExxonMobil last year discussed the opportunity of merging the 2 firms, The Wall Street Journal reported Sunday, citing unnamed individuals conversant in the talks.

The newspaper reported that Chevron CEO Michael Wirth and Exxon CEO Darren Woods spoke concerning the prospect after the Covid-19 pandemic started to negatively affect oil costs.

The talks aren’t ongoing and had been described as preliminary, in line with the Journal. Representatives from the 2 firms declined to remark. The talks had been later reported by Reuters.

A merger between Chevron and Exxon could be among the many largest in historical past, and would doubtless face antitrust scrutiny from President Joe Biden’s Department of Justice. Both firms descend from John D. Rockefeller’s Standard Oil, which was damaged up by the Supreme Court in 1911.

Chevron’s market cap is $164 billion, and Exxon’s is $189 billion, that means that the mixed firm could be value north of $350 billion. The mixed agency could be the second largest oil and fuel firm on the planet, after Saudi Aramco.

Oil costs have recovered a lot of their losses since cratering in March, although they’ve remained considerably depressed amid a slower-than-expected vaccine roll out and worries of latest coronavirus variants.

— CNBC’s Pippa Stevens contributed to this report.

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