Blended: Pennzoil And Quaker State
PENNZOIL, WHICH RECENTLY fought off a hostile takeover bid, is spinning off its consumer automotive products and Jiffy Lube businesses. The new company will then merge with rival Quaker State to form the nation's largest motor-oil concern. Pennzoil shareholders will hold 61% of the newly formed $3 billion company, which will control 37% of U.S. retail motor-oil sales and 15% of the quick oil-change market. The Pennzoil restructuring, which has been expected, will leave the Houston outfit as an oil and gas exploration and production company.