The Washington State Attorney General’s Office said it will sueto stop BP Amoco and Arco from merging their companies. The Stateof Oregon also said it will join Washington and the Federal TradeCommission (FTC) in opposing the merger. California also isreviewing its litigation options.

With the proposed merger, BP Amoco and Arco would control nearly75% of the crude oil produced on the Alaskan North Slope, whereWashington’s five refineries get their supply. These refineriessupply most of the gasoline consumed in Washington and Oregon.

“We are concerned about this merger because we want to ensure thatprices remain competitive for Washington’s consumers, not just for theshort term but into the future,” said Washington State Atty. GeneralChristine Gregoire. The states announced their lawsuits a day afterthe FTC said it would seek a preliminary injunction against themerger. (See Daily GPI, Feb. 3)

On April 1, BP announced its intention to buy Arco for about$26.8 billion. Since then the FTC and the three states have beeninvolved in extensive investigations and negotiations trying toreach an agreement.

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