SOCAL-Gulf face hurdles

Press, 8 March 1984, Page 28

SOCAL-Gulf face hurdles

By JOHN CRUDELE NZPA-Reuter New York

The acquisition of Gulf Oil by Standard Oil of California (SOCAL), the largest corporate merger proposal in history, must still overcome a number of regulatory and congressional hurdles before it gets into the record books. SOCAL announced on Monday that it had agreed to pay SUSBO for each of Gulf’s approximately 165 million common shares, a SUSI 3.4 billion (about SNZ2O.3 billion) deal that will create the third largest energy company in the United States behind Exxon and Mobil.

The boards of both companies have approved the transaction, but Wall Street analysts say there are still a number of complications that could delay completion of the merger. It must first be approved by the Federal Trade Commission, which will study the proposed link for any overlaps in the oil marketplace.

Legal specialists say the merger should gain approval after the new SOCAL-Gulf company agrees to divest a number of operations. Oil-industry analysts say these are likely to include retailing businesses in several states and at least one major southern refinery. . Some smaller petro-chemical operations may also run foul of antitrust laws, they said.