Feds Approve BP-Amoco Merger
The $57.1 billion merger of British Petroleum Co. and Amoco Corp. was approved by the Federal Trade Commission Wednesday after the companies agreed to make certain divestitures and give owners of more than 1,600 gasoline stations in 30 cities permission to end their contracts.
FTC Chairman Robert Pitofsky said the agency was satisified that "the operations of these two companies rarely overlap in a way that threatens competition."
The FTC voted 4-0 to approve the companies' offer, and its approval of the merger becomes final after a 60-day comment period.
The merger, announced Aug. 11, is among the largest in history involving American companies.
The FTC said it looked at business areas where British Petroleum and Amoco's operations might overlap and found few reasons for concern.
"Where they do overlap, mainly in wholesale and retail sale of gasoline in local markets in this country, the commission with the cooperation of the companies has achieved substantial divestitures and other relief," Pitofsky said in a statement.The companies offered to divest 134 gas stations in eight markets and nine light petroleum products terminals, an they will make it easier for independent retail dealers to switch their gasoline stations to other brands. The sales of those stations must take place within six months.
The FTC said the companies will sell the nine terminals, all located in the Midwest and Southeast, to The Williams Cos. or to another company approved by the FTC.
That sale must take place no later than 10 days after the merger is completed or within the next 30 days, whichever is later.