Mergers, Acquisitions and Takeovers Case Study

Chevron's Acquisition of Unocal : A Hard Won Battle and the Business Prospects

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Abstract:
The takeover battle between Chevron and China National Offshore Oil Corporation (CNOOC) for Unocal, the seventh largest independent oil company in the US, was a highly politicised event in US corporate history. With CNOOC backing out of the deal due to political pressures, Chevron acquired Unocal, thus becoming the fourth biggest oil company in the world. Chevron's management was confident that the acquisition was a perfect fit for the company. Several industry experts also acknowledged the synergies between the two companies. However, some were of the opinion that the acquisition would fail to deliver for Chevron. The case study offers an insight into the takeover battle for Unocal between Chevron and CNOOC and the expected synergies from Chevron's acquisition of Unocal.

Pedagogical Objectives:

• To discuss whether the acquisition would be beneficial to Chevron in the long run and how this acquisition might change the competitive dynamics of the industry.

Keywords : Chevron;Unocal;Mergers,Acquisitions,Alliances Case Study; China National Offshore Oil Corporation (CNOOC); Mergers and acquisitions; Inorganic growth; Takeover battles; Merger synergies; David J O’Reilly; Political environment; Political risks; Legal and regulatory environment; Oil production and exploration; Corporate governance; Peak oil theory

Contents : 
Chevron vs. CNOOC: The Battle for Unocal
Chevron and Unocal Merger: The Expected Synergies
World View Showing Location of all Chevron Exploration and Production
Unocal’s Worldwide Operations
Chevron-Unocal Combined Production and Reserve
Chevron’s ‘Real Issue’ Print Advertisement