The last several years have seen the most active period of petroleum related merger and acquisitions activity in the several decades since World War II. When the history of the current era is written, an important chapter will address the substantial, de facto restructuring of the petroleum industry which is occurring as a result of recent acquisitions and mergers.

The comments contained herein are based on analysis of some 42 announced proposals and actual transactions in the last five years. In all, these deals represent total market values at the time of announcement of some $36 billion.. By way of comparison, the total energy components now account for approximately 17°Lof the Standard and Poors 400 industrial index and have an aggregate market value of the order of $170 billion.

Breaking these deals down by the nature of the transaction, seven, and nearly all of the very largest deals, represent defenses against hostile or unsolicited offers by third parties, seven are internally or management initiated reorganizations/rationalizations of corporate businesses, another nine or part of the corporate liquidations, and the remaining 20 are outright sales of the entire company.

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