LONDON (Brand Republic) – Chevron, the US oil group in the process of buying rival company Texaco, has said it will cut 4,000 jobs when the £25.4bn ($35.6bn) takeover is complete.
Most of the job cuts will affect those working at Texaco’s headquarters and in exploration. Chevron wants to see savings of $1.2bn each year as a result of the takeover.
Both US and European regulatory authorities are expected to launch enquiries into the latest merger in an industry already dominated by a few global companies.
But Chevron chief executive Dave O’Reilly said a more competitive industry, brought about by consolidation, would be better for consumers.
The decision by Chevron and Texaco has fuelled speculation that Royal Dutch/Shell may make a bid for BG International, which moves on to the London stock market as an independent company on Monday when it is separated from the other former British Gas interests, Transco and Lattice.