BRUSSELS Belgium AP France's oil giant Total SA will take over Belgium's Petrofina SA merging the two into one of the world's largest oil companies the companies announced Tuesday. The merger announcement comes on the same day that Exxon and Mobil agreed to a record dlrs 77.2 billion merger creating the world's largest oil company. ``The move is part of a global change oil prices have practically been cut in half over the past year. All companies are seeking to survive in this new situation'' said Total Chairman Thierry Desmarest. ``The business environment will be tougher than in past years.'' The new company known as Total Fina would be the third-largest oil company in Europe and will seek to be listed on the Paris Brussels New York and London stock exchanges a joint statement said. Employment totals would remain largely unchanged with 69100 people working for the new group officials from the two companies said. ``The combination of Total and Petrofina will allow the new entity to capture substantial productivity gains particularly in the North Sea and to expand its positions in the deep offshore United States Angola'' a joint statement said. The deal to create Total Fina is based on a stock swap that gives Total control of 41 percent of Petrofina Belgium's largest industrial company. The remainder of Petrofina's shares will be bid on at a later date company officials said. Investors on the Paris stock exchange reacted skeptically to the new merger. Total shares took a big hit falling almost 10 percent in early trading Tuesday. Before the deal was announced the two companies had stock worth 1391 billion Belgian francs dlrs 39.9 billion. Petrofina stock has been gaining ground in recent days on rumors that the company was in talks with France's Elf Aquitaine SA Total SA and Italy's ENI SpA. Petrofina's stock stood at 14250 francs dlrs 407.9 Friday before trading was suspended Monday. The deal valued the stock at 19.482 francs dlrs 557.7 an increase of more than one-third. ``We have to recognize that the value today is higher than what we could get as a stand-alone company in the medium term'' said Francois Cornelis head of Petrofina. A combined general meeting of shareholders has been called for Jan. 14 to approve the agreement. Petrofina which employs 14700 people worldwide is one of Belgium's biggest industrial companies with refining and distribution operations in Europe and the United States. Total SA employs 54400 and is France's No. 2 oil company but has aggressively expanded crude oil and gas businesses. APW19981201.0517.txt.body.html APW19981201.1429.txt.body.html