BP Amoco and ARCO get FTC go-ahead to combine
BP Amoco and Atlantic Richfield Co. said today that they have received clearance from the U.S. Federal Trade Commission for the combination of their companies.
The union, which was originally agreed a year ago, will create a combined group with a market capitalization of some $200 billion.
BP Amoco chief executive Sir John Browne said: "We are very pleased to have received FTC approval. We will now close the deal and rapidly implement the plans we have in place to integrate our operations worldwide. We intend to move quickly to deliver the significant value of this union to the shareholders of the new group."
BP Amoco and ARCO said they plan to close the transaction at 0800 hours, London time, on Tuesday, April 18, 2000. The last day of trading in ARCO common stock will therefore be Monday, April 17, 2000.
Companies integrate oil, gas interests at Prudhoe
Phillips Petroleum Co., Exxon Mobil Corp., BP Amoco and ARCO said April 13 that they have reached an agreement to resolve outstanding issues relating to ownership and operation of the Prudhoe Bay and Point Thomson units.
The agreement aligns the respective oil and gas equity interests of ExxonMobil, BP and Phillips in the Prudhoe Bay unit and provides for a single operator -- BP. The combined oil and gas interests at Prudhoe Bay will be: ExxonMobil, 36.8 percent; Phillips, 36.5 percent; BP 26.7 percent.
The agreement also aligns interests between ExxonMobil and BP in the Point Thomson field area at 55 percent and 45 percent, respectively.
Phillips will operate the Kuparuk and Alpine fields.
FTC's proposed consent order gives 30 days for Alaska divestiture
The Federal Trade Commission said that it has accepted a proposed consent order that would remedy the likely anticompetitive effects of the proposed $27 billion merger of BP Amoco p.l.c. and Atlantic Richfield Co.
Under the terms of the order, the FTC said, BP Amoco would be required to divest all of ARCO's assets relating to oil production on Alaska's North Slope to Phillips Petroleum Co. or another commission-approved purchaser. With limited exceptions, the divestitures must take place within 30 days. BP Amoco also would have to divest all ARCO assets related to its Cushing, Oklahoma crude oil business within four months.
"The sweeping wholesale divestitures called for by the consent order resolve the competitive concerns that initially led the commission to seek a preliminary injunction to block the proposed transaction," said Richard Parker, director of the FTC's Bureau of Competition. "Through productive negotiations with the defendants, the Commission achieved complete relief in this complex, multifaceted merger without the need for continued litigation."
Under the proposed order, BP Amoco would be required to divest ARCO's complete, free-standing businesses, including oil and gas interests, tankers, pipeline interests, real estate exploration data and selected long-term supply agreements.
The FTC said that a summary of the proposed consent agreement will be published in the Federal Register shortly. The agreement will be subject to public comment for 30 days, until May 15, 2000, after which the commission will decide whether to make it final. Comments should be sent to the Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580.
The Commission vote to accept the proposed consent order and Order to Hold Separate and Maintain Assets was 5-0.
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