- The proposed merger of US oil companies Chevron and its US rival Texaco is almost certain to be followed by a struggle for control of the combined advertising business of the two companies, worth several hundred million dollars.
Chevron, based in San Francisco, works with both Young & Rubicam and J.Walter Thompson in the US on an account that is worth more than $150 million.
The smaller Texaco, based in New York, has both its $60 million corporate advertising account and its $35 million retail account consolidated at BBDO Worldwide, New York.
The deal - like the BP Amoco alliance - while billed as a merger will almost certainly be seen as a take-over by Chevron of its smaller rival. Texaco has a market capitalisation of about $35 billion compared to Chevron's $62 billion.
However, the merger is unlikely to affect Texaco's recent appointment in the UK of HHCL & Partners to its estimated £10 million account as Chevron has very little presence in the UK.