U.S.-based ChevronTexaco, the country's second largest oil company, has announced that it will acquire Unocal in an $18-billion stock and cash deal.
The oil giant will pay about $62 for each Unocal share.
Acquisition of the California-based company will enhance ChevronTexaco's position as a leading energy producer in Asia, the Caspian Region and the Gulf of Mexico. Unocal will boost ChevronTexaco's reserves by more than 15 percent, according to Unocal's website.
An analyst at the Bloomberg financial news service says the purchase will make ChevronTexaco the world's fourth largest oil producer.
The sale must be approved by Unocal shareholders and U.S. regulatory agencies.
Monday's announcement comes the same day that oil futures reached record levels by topping 58 dollars a barrel.