Chevron/Texaco Merger Requires Sell-off

The oil and energy industry was rocked with the news of the $100 billion merger between Chevron and Texaco.

However, if the merger actually were to go through, analysts predict that Texaco will have to sell off its partnership with the Royal Dutch/Shell Group in the western United States before the deal can be finalized.

Why? Chevron actually will acquire Texaco to form the new company, Chevron-Texaco, and as a result, the merger places the company in direct competition with the three largest oil companies in the world, including Exxon Mobil, BP Amoco and Royal Dutch/Shell Group.

With energy reserves and exploration a major focus of the presidential election, Chevron is banking on the fact that regulators will act kindly towards the company and grant the acquisition.

You may like these other stories...

Is it time to consider a value added tax?Forbes contributor Joseph Thorndike wrote yesterday that he believes the tax reform proposal by House Ways and Means Committee Chairman Dave Camp (R-MI) was dead on arrival. But he...
Read more from Larry Perry here and in the Today's World of Audits archive.The planning phase of an audit engagement of an entity using US GAAP or a special purpose framework will, with minor differences, include similar...
Internal audit: Know when to discloseIn an excerpt from his book, Lessons Learned on the Audit Trail, Institute of Internal Auditors President and CEO Richard F. Chambers said if you analyze enough audit reports, you can...

Upcoming CPE Webinars

Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.