In terms of the company's plans for its headquarters complex at 2000 Westchester Ave., Weeditz says that the company will now begin studying how to consolidate operations, including its real estate holdings. However, he adds, "It is too early to tell right now. It is impossible to gauge any effect (of the merger) on any one office."
He stressed that no decision had been made on whether Texaco's Harrison offices would be retained or vacated after the merger is consummated. Texaco first took occupancy of its corporate headquarters in Harrison in Sept. 1, 1977.
The total square footage of the Texaco headquarters in Harrison at approximately 770,000 sf. Currently, 800 Texaco employees are working at the headquarters facility. In addition, in November 1999, Atlas Air Inc. of Golden CO, signed a long-term lease for 120,000 sf of space at the complex. The firm has since relocated its operations from Colorado and from space at JFK Airport to the 2000 Westchester Ave. complex. Officials with Texaco note that Atlas Air has an option for an additional 80,000 sf of space.
Texaco has some operations in Beacon in Dutchess County, however, the workforce there has been downsized considerably over the past few years. The firm's Beacon facility totals 442,000 sf and at one time housed its research and laboratory division. The complex now has a workforce of 118 employed at the Old Glenham Road site.
As with most mergers, the companies plan to implement cost savings and consolidation programs, including workforce reduction initiatives. Texaco and Chevron officials say they plan to reduce the combined worldwide workforce (57,000) of the merged company by 7% or approximately 4,000 employees.
Dave O'Reilly, Chevron chairman and chief executive officer, will serve as chairman and CEO of ChevronTexaco. Peter Bijur, Texaco chairman and CEO, will become a vice chairman of the combined company with responsibility for downstream, power and chemicals operations.
The merger is conditioned, among other things, on shareholder approval for both companies, pooling accounting treatment for the merger and regulatory approvals of government agencies such as the U.S. Federal Trade Commission. Chevron and Texaco anticipate that the FTC will require certain divestitures in the U.S. in order to address market concentration issues, company officials say.
Lehman Brothers Inc. is acting as financial advisor to Chevron. Al Pepin; Fried, Frank, Harris, Shriver & Jacobson; and Pillsbury Madison & Sutro are acting as legal advisors to Chevron. Credit Suisse First Boston and Morgan Stanley Dean Witter are acting as financial advisors; and Davis Polk & Wardwell; Howrey, Simon, Arnold & White; and Weil Gotshal & Manges are acting as legal advisors to Texaco.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
