Case Details

Year Initiated/Committed

2001

Year Resolved

2001

Settlement Amount

$1,410,882.33 costs

Court

U.S. District Court for the Northern District of California, U.S. District Court for the Western District of Washington

Docket Number

01-07746 (California); C97-1980 (Wash.)

Lead State

WA

Participating States

AK, AZ, CA, FL, HI, ID, NM, NV, OR, TX, UT, WA

Defendant(s)

Chevron Corp.; Texaco, Inc

Case Description

Plaintiff States sought to enjoin Chevron Corporation (Chevron) and Texaco, Inc. (Texaco) from consummating their merger, arguing that the merger would significantly impair competition in the markets for refining, wholesaling, and retailing of gasoline and other motor vehicles; aviation gasoline and jet fuel; and California crude oil. The Plaintiff States sought to enjoin Chevron and Texaco from entering into a merger which they alleged would substantially reduce competition in the markets for refining, wholesaling, and retailing of gasoline and other motor vehicles; aviation gasoline and jet fuel; and California crude oil. In order to ensure a competitive market and to allow consummation of the merger, Texaco agreed to divest all of its interests in the joint ventures, Motiva and Equilon. Further, Chevron and Texaco were required to maintain certain assets as viable and competitive businesses pending their divestiture. In turn, the divestitures ensured a more competitive market, resulting in lower gasoline prices to consumers. The States were also awarded $1,410,882.33 in investigative costs and attorneys fees. This matter was handled as part of a parallel review of the merger by the Federal Trade Commission.