Federal Trade Commission Approves BP Amoco Merger
The companies said they intend to close the transaction shortly after 2100 hours London time on 31 December 1998 when Amoco's stock will leave the Standard and Poors 500 and the shares of the merged group, BP Amoco p.l.c., will be listed on the London Stock Exchange. American Depositary Shares of BP Amoco p.l.c. will subsequently be listed on the New York Stock Exchange and the Pacific, Chicago and Toronto stock exchanges.
The shares of the new group will join the FTSE Index and begin trading in London and, in ADS share form, on the North American exchanges, at opening of business on 4 January 1999.
With a market capitalisation of more than $140 billion, BP Amoco p.l.c. will be Britain's biggest company and one of the world's top three oil majors. The merged group will enjoy prime positions in key oil and gas producing areas, retail markets, petrochemicals and emerging regions. It has targeted an improvement of at least $2 billion in underlying pre-tax annual earnings by year-end 2000.
In a joint statement, BP chief executive Sir John Browne and Amoco chairman Larry Fuller said: "When we announced the merger in August we set ourselves the demanding target of closure by year-end. We are delighted that we will achieve that and, in the process, set a new record of 100 working days for the completion of such a large and complex transaction."
As part of the FTC approval process, BP and Amoco have undertaken to dispose of around 150 retail sites and offer termination rights in respect of some wholesaler gasoline supply contracts. The retail sites and wholesalers are principally situated in certain parts of the Southeastern part of the US and in Ohio. BP and Amoco have additionally undertaken to complete the previously publicised disposal of Amoco terminals to Williams, an independent operator of US terminals.
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