San Francisco -- Chevron Corp. and Phillips Petroleum Co. said they'll combine their chemical businesses into a joint venture and cut about 600 jobs, or 10 percent of their combined chemicals workforce.
The venture will have more than $6 billion in assets. The companies expect to reduce costs by $150 million a year through the job cuts and improvements in efficiency.San Francisco-based Chevron is the second-largest U.S. oil company. Phillips, based in Bartlesville, Oklahoma, is the sixth-largest. Their chemicals businesses had combined 1999 revenue of almost $6 billion.
The venture will borrow $1.6 billion and pay Chevron and Phillips $800 million in cash each. The companies expect to complete the transaction by midyear.
Chevron shares fell 2 7/8 to 78 9/16 on Friday. Phillips fell 3/8 to 39.