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Texaco merger gets go-ahead
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October 9, 2001: 3:12 p.m. ET
Texaco shareholders approve merger with Chevron.
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NEW YORK (CNNmoney) - Texaco shareholders overwhelmingly approved the company's proposed merger with Chevron Tuesday, which has already received the green light from U.S. and European regulators.
Last month the Federal Trade Commission approved the $35 billion deal, which will create the fourth-largest oil conglomerate in the world.
Texaco said 98.3 percent of its shareholders voted in favor of creating ChevronTexaco Corp. at a specially arranged meeting.
"We are very pleased with the outcome of this vote and wish to thank our stockholders for the confidence they have expressed in our plans to merge with Chevron," said Glenn F. Tilton, Texaco chairman and CEO, in a statement.
Shell in for Equilon, Motiva
Texaco also removed another hurdle to the venture Tuesday, as Royal Dutch/Shell Group and partner Saudi Aramco agreed to buy out Texaco from a three-way U.S. gasoline joint venture.
Under the last-minute deal, European oil producer Shell (RD: up $0.34 to $51.53, Research, Estimates) and the state-controlled Saudi group will buy Texaco's interests in oil refining and petrol marketing businesses Equilon and Motiva for a total of $3.8 billion, including $2.1 billion cash, acquired debt of $1.4 billion, and $300 million in pension liabilities.
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The sale is aimed at heading off any regulatory objections to the proposed takeover of Texaco by its larger U.S. rival Chevron (CHV: up $0.84 to $89.79, Research, Estimates), and should allow that deal to proceed.
Shell and Texaco needed to settle a long-running wrangle over price by Tuesday, or the assets would have been put into trust.
Texaco (TX: up $0.76 to $69.09, Research, Estimates) and Chevron expect to complete their merger later Tuesday. 
-- from staff and wire reports
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