BREAKING NEWS:FTC Approves Chevron Bid to Buy Texaco

WASHINGTON -- The U.S. Federal Trade Commission today approved Chevron Corp.'s acquisition of White Plains, N.Y.-based Texaco Inc. after the companies committed to sell Texaco's U.S. refining and marketing businesses, a spokesman for the agency said.

The FTC voted 4-0 to allow the creation of ChevronTexaco Corp., the world's fifth-largest oil company -- second-biggest in the United States -- as long as the companies spin off Texaco's interest in its Houston-based holding companies Motiva Enterprises LLC and Equilon Enterprises LLC with Royal Dutch/Shell Group and Saudi Aramco, the agency spokesman said.

Chevron and Texaco will seek approval of the merger by their respective stockholders at separate stockholder meetings scheduled for Oct. 9 in Houston.

"Today marks a critically important milestone as we move to establish a premier energy company with the world-class assets, talent, financial strength and technology to achieve superior results," said Chevron Chairman and CEO David J. O'Reilly, who will lead the new company in the same capacity.

Under an agreement with the FTC, the companies must either sell Texaco's interests in Equilon and Motiva or put them into trust before closing the deal, the agency spokesman said.

The companies also agreed to sell Texaco's one-third interest in a pipeline in the Gulf of Mexico; Texaco's interest in a fractioning plant in Mont Belvieu, Texas, and its general aviation businesses in 14 states.

The companies have been negotiating with antitrust regulators since they agreed to the deal last October. But efforts to sell Texaco's stake in the refining and marketing business had been bogged down in prolonged discussions with the company's joint-venture partners.
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