European Union clears way for BP takeover of ARCO

Petroleum News Alaska Staff

The Scotsman reported Aug. 16 that BP Amoco “took a giant step towards getting regulatory approval in the European Union for its proposed $27 billion acquisition of ARCO after it emerged yesterday that the European Commission did not formally object to the oil giant swallowing its smaller rival.”

The news report said that Exxon, the world’s largest oil company, also “appeared confident” of the European Union ‘s approval for its $80 billion merger with Mobil, as Exxon did not ask the European Union to hold a hearing — a standard procedure in European merger reviews.

Both developments, said The Scotsman, “came as a surprise, after the commission cast some doubt about the deals’ future in June, saying the current wave of industry consolidation could result in oil exploration being controlled by a cluster of super companies.”

Both Exxon and BP Amoco waived their right to a hearing. The report said that is “an unusual step” which indicates optimism about regulatory approval.

The commission has until Oct. 12 to render its decision on both mergers, but decisions are expected late in September, said The Scotsman.

The report said that the commission has been “co-operating closely” with U.S. authorities, which are also reviewing both mergers.