Chevron and Unocal Reach Agreement with Federal Trade Commission Staff

Chevron Corporation (NYSE: CVX) and Unocal Corporation (NYSE: UCL) said they executed agreements with the Federal Trade Commission (FTC) staff proposing a settlement to resolve all outstanding FTC issues associated with Chevron's proposed acquisition of Unocal.

The terms of the settlement relate exclusively to Unocal's intellectual property for reformulated gasoline, which has been the subject of ongoing litigation between Unocal and the FTC. The proposed settlement also would resolve that litigation contingent on completion of the proposed acquisition, and as a result, the parties have filed a joint motion to withdraw the case from adjudication.

The proposed settlement is subject to acceptance by the commission for public comment and approval by the commission following the public comment period.

"This is a very positive step toward achieving regulatory approval," said David O'Reilly, Chevron Chairman and Chief Executive Officer. "We are optimistic about completing the regulatory review shortly and look forward to the prompt consummation of the acquisition."

The proposed acquisition remains subject to approval by Unocal stockholders and the fulfillment of other customary conditions.