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Mobil, Hoechst End Opp Merger Talks

1 September 1998

Mobil, Hoechst End Opp Merger Talks

    FAIRFAX, Va.--Sept. 1, 1998--Mobil Corp. and Hoechst AG announced Tuesday that they will not proceed with the proposed joint venture to combine their oriented polypropylene (OPP) flexible films businesses.
    OPP film is used in the snack, confectionery, bakery, label, capacitor and tobacco industries.
    In March of this year, the two companies announced the signing of a Letter of Intent to merge the manufacturing, marketing/sales, research and development, and support groups of Mobil Chemical Company's Films Division with those of Hoechst Trespaphan.
    Following further discussions, Mobil and Hoechst were unable to reach agreement, so the companies have decided to end discussions concerning the proposed merger.
    "Unfortunately we were unable to reach terms for the proposed merger," said Mobil Chemical President Raymond J. McGowan. "Mobil Films remains the world leader in the OPP films industry and will continue to provide outstanding service to its customers."

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