NEW YORK -- Mobil Corp. announced Friday that it has completed its $5.7 billion takeover of Superior Oil Co. in the fifth largest oil industry merger in history.
Superior, a large oil and gas producer based in Houston, now is a wholly owned subsidiary of Mobil.
Mobil said it is mailing formal notice of the merger completion to former Superior shareholders, along with instructions on exchanging their Superior stock certificates at Bankers Trust Co. beginning October. 1.
Under the terms of Mobil's friendly bid for Superior, former Superior shareholders will receive $20 in cash and $25 principal amount of Mobil's 13.765 percent debentures due 2004 for each of their shares.
Early this year, members of Superior's founding Keck family approached Mobil about a possible takeover of the company, which was then the largest independent oil and gas producer in the United States.
Mobil agreed to buy the Keck family shares for $45 apiece and then agreed to launch a tender offer for the remaining shares at the same price.
The Federal Trade Commission approved the Mobil-Superior combination because the deal did not pose any anti-trust problems. Since Superior has no retail marketing outlets, the merger will not affect competition in the marketplace.
Even with the Superior acquisition, Mobil remains the nation's second largest oil company based on revenues and reserves. Mobil is headquartered in New York.