Sunday Chevron Corp.& Texaco Inc. boards approve the deal for Chevron to buy out Texaco for $35.1 billion in stock, plus the assumption of $7.5 billion in debt, creating the fifth largest oil company in the world.
An official announcement will be made Monday morning. The WSJ and News agencies reported.
The terms of the deal are: Chevron offered 0.77 of a share for each share of Texaco, the new company will have both names "Chevron-Texaco".
Chevron CEO David O' Reilly will be chairman and CEO of the new Chevron -Texaco, Texaco, Peter Bijur, will be vice chairman, Chevron shareholders will own 61 percent of the new company, and will have nine of the 15 board seats.
The proposed deal, will still require the approval of the Federal Trade Commission, which expressed concern about oil industry consolidation after the last round of mergers.
By Elio Ohep
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