BRUSSELS Belgium AP France's oil giant Total SA will take over Belgium's Petrofina SA the companies announced Tuesday merging into the world's fifth largest oil company. The announcement comes the same day that Exxon and Mobil created the world's largest oil company in a record dlrs 77.2 billion merger. ``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 the fifth largest overall. It 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. 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 recently expanded its crude oil and gas businesses. Investors on the Paris stock exchange reacted skeptically to the new merger. Total shares took a big hit falling 11 percent 79 French francs dlrs 13.8 Tuesday and stood at 626 French francs dlrs 109.8 in afternoon trading. Petrofina in Brussels was up 20.4 percent in late afternoon trading winning 2900 Belgian francs dlrs 83 and stood at 17150 Belgian francs dlrs 491. 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. APW19981201.0904.txt.body.html APW19981201.0577.txt.body.html