Abstract
Phillips Petroleum Co. and Chevron Corp. are joining the long list of chemical producers looking to fatten their bottom lines through massive mergers. The two U.S. oil companies have agreed to combine their chemical businesses in a stand-alone, 50-50 joint venture with assets valued at about $6.1 billion. Phillips has long been eyeing a petrochemicals joint venture. We recognized that in our chemicals business, our assets were commodity related, says J. L. Qim) Gallogly, Phillips senior vice president of chemicals and plastics who has been named president and chief executive officer of the as-yetunnamed, Houston-based partnership. In uniting their chemical businesses, Phillips and Chevron are aiming for financial strength and a complementary fit. Based on 1999 figures, the revenues of the combined chemical businesses add up to $5.7 billion, with pretax earnings of $700 million. Phillips and Chevron will each take cash distributions of $800 million upon formation of the joint venture, which, as a ...
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
