Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.
On Nov. 30, 1999, a $73.7 billion merger between Exxon and Mobil Oil established the largest company in the world.
Where the Market Was
The S&P 500 shares closed 1.90 percent lower at $4,567.00 and the Dow Jones Industrial Average shares closed 1.86 percent lower at $34,483.72.
What Else Was Going On In the World
Anti-globalization protesters pressured the World Trade Organization to cancel the opening ceremonies of its Seattle meeting, and Russian President Boris Yeltsin was preparing his year-end resignation resulting in Vladimir Putin’s rise.
Exxon Mobil Gets Its Start
With a 4–0 vote of approval from the Federal Trade Commission, Exxon Mobil Corporation (XOM) was officially formed to protect the entities from crude oil price pressure and the rise of overseas rivals.
The world’s No. 1 and No. 2 oil companies drew antitrust concerns given their direct competition in more than 40 U.S. metropolitan areas. As such, the FTC conditioned its support on the sale of 2,431 gas stations — which then amounted to the largest divestiture ever required.
“This settlement should preserve competition and protect consumers from inappropriate and anticompetitive price increases,” FTC Chairman Robert Pitofsky said at the time.
Upon deal completion, Exxon Mobil surpassed Royal Dutch Shell plc ADR Class A (NYSE: RDS-A) and BP plc (BP) Amoco in size.
Eventually, Apple Inc. (AAPL) overtook the firm in market cap to claim the title of the world’s largest company.
By Elizabeth Balboa
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