Chevron and Phillips Petroleum are moving closer to a merger deal that would value the new company at approximately $78 billion. Chevron is offering to buy Phillips Petroleum for $18.4 billion which equates to over $70 per share for Phillips. These merger talks started after Chevron and Phillips merged their chemical divisions earlier this year. Chevron is the fourth largest oil company in America, while Phillips is ranked seventh. The companies are seeking a deal not only to grow, but to strengthen themselves against hostile takeover.