British Petroleum (BP) and Amoco Corp. said they will completetheir merger today after receiving Federal Trade Commission (FTC)approval yesterday for the $57 billion deal. To win FTC approval,the companies agreed to free up more than 1,600 gas stations in 30southeastern and midwestern markets and to divest nine petroleumterminals. The 4-0 vote in favor of the merger becomes final aftera 60-day comment period.

The commission found BP and Amoco’s operations do not overlapsignificantly in most areas, such as oil and natural gas productionor petrochemical manufacturing.

“We set ourselves the demanding target of closure by year-end,”BP CEO John Browne and Amoco Chairman Larry Fuller said in astatement. “We are delighted that we will achieve that and, in theprocess, set a new record of 100 working days for the completion ofsuch a large and complex transaction.”

Under the proposed FTC agreement, BP and Amoco would divest 134gas stations in eight markets and nine light petroleum productsterminals. The FTC said the companies will sell the nineterminals-all located in the Midwest and Southeast-to The WilliamsCo. or to another company approved by the FTC. In addition, in the30 markets the companies would make it easier for independentretail dealers to switch their gasoline stations to other brands.

“Although the merger of BP and Amoco involves companies ofenormous size, and there is a significant trend towardconcentration in the petroleum industry, the operations of thesetwo companies rarely overlap in a way that threatens competition,”said FTC Chairman Robert Pitofsky. “Where they do overlap, mainlyin wholesale and retail sale of gasoline in local markets in thiscountry, the commission with the cooperation of the companies hasachieved substantial divestitures and other relief that makes itlikely that consumers will enjoy the benefits of competition.Mega-mergers in all industries warrant close antitrust review. Thecommission will continue to examine each transaction on its ownspecial facts to determine whether the overall effect is likely tolessen competition and injure consumers.”

The BP-Amoco deal is bettered in size by the pending $77.2billion merger of Exxon and Mobil. That merger also is expected toresult in divestiture of gasoline stations and refineries inregions where the new company would dominate the market.

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