In the mid-to-late 1980s, the number of places in the world where one had opportunities for exploration and productions were limited. In the late 1990s, there were more opportunities so far as oil production and exploration of oil was concerned. Many countries were opening up, such as China, Venezuela, and countries in the Middle East. These were the sort of large-scale, capital-intensive opportunities that the merger entity would capitalize on.

This is one of the reasons why Exxon and Mobil had merged to increase the scope of opportunities. In 1999, Exxon and Mobil signed a $81 billion agreement to merge and form Exxon Mobil. Not only did Exxon Mobil become the largest company in the world, it reunited its 19th century former selves, John D. Rockefeller's Standard Oil Company of New Jersey (Exxon) and Standard Oil Company of New York (Mobil).

Required: Answer the following questions.

1. The Exxon-Mobil merger was one of the biggest industrial mergers ever. What type of merger it was? Do you see any synergy in this merger? If yes, in what form the synergy was found?

An analyst commenting on the Exxon-Mobil merger said "While most mergers go wrong, this deal struck gold ... black gold". Do you think this merger was successful? If yes, elaborate the key success factors behind Exxon-Mobil as a merged entity?