OIL: Coup for Texaco

The richest plum among the oil industry's independents finally fell last week, and it went to one of the strongest integrated majors. In an $810 million deal, Texaco, No. 2 U.S. producer—No. 1: Standard Oil Co. (N.J.)—and refiner, bought California's profitable Superior Oil Co., whose earnings last year totaled $39.20 a share. Superior stockholders will get 24 shares of Texaco for each share they now hold; Texaco will then absorb Superior's holdings and dissolve the company.

Texaco gets a company rich in reserves to protect itself against trouble in the Middle East. Though it has large holdings in Louisiana...