BP Amoco Case Group 1 AM Edits

In March 1999 British Petroleum Amoco (BP) announced its intention to acquire the Atlantic Richfield Company (ARCO) for $25.6 billion in stock, by exchanging 1.64 BPA U.S. ADR share for every outstanding share of ARCO (9.84 U.K. ordinary share), post-BPA stock split. On 1 April 1999 the Boards of BP Amoco and ARCO announced that they had reached agreement on a proposed combination of their two companies. The enlarged group will initially be held as to 85% by BP Amoco shareholders and 15% by ARCO shareholders. The BP/ARCO deal was one of the largest oil mergers ever and attracted a lot of public attention as well as antitrust scrutiny. The merger raised fundamental antitrust concerns that could be alleviated only by major

In March 2012, ConocoPhillips Company and ConocoPhillips Canada Marketing & Trading ULC expressed intent to assign the Keystone Expansion, Patoka and Marketlink Transportation Service Agreements to Phillips 66 Canada ULC. The year before, the Conoco Phillips board of directors announced that it would pursue the separation of its refining and marketing and exploration and production business into two separate standalone companies. Phillips 66 was to be the refining and marketing company and COP was to become the exploration and production company. The TransCanada credit risk department assessed that COP and CPCMT had an “A” credit rating and assets totaling $110,000,000,000 while Phillips 66 had a “BBB-” credit rating and estimated assets of

Secondly by focusing on Exxon Mobil merger, we observe that it was a financial success in because both companies expected USD 2.8 billion of near term operating synergies and in a news release reports on July 1st, 2000 ExxonMobil reported that synergies had reached USD 4.6 billion and some analysts even believed that total projected synergies would even reach USD 7 billion. Moreover, since the acquisition

In late 1990, the group of Amoco Corporation and Apache Corporation had begun talking regarding the possible acquisition of MW Petroleum from Amoco to Apache. MW Petroleum Corporation is a wholly owned subsidiary of Amoco Corporation which has its own reserves, management team and with full ownership in geologic and engineering data. MW Petroleum, a free-standing exploration company that was even as large as some of independent oil companies. It operated exploration and development for well, approximately working interests in 9,500 wells in 300 production areas. The growth of MW was very attractive to the other investors, which company grows 30% per year since mid-1980s, due to large

The communities in the Gulf of Mexico should’ve been the primary concerns for BP. This spill threatened the livelihoods of thousands of fishermen and led to less traffic for hotel owners in the southeast with tar balls washing up on beaches. In addition BP should’ve been concerned the overall reception from the United States. Many people were turned off from buying BP strictly by how they handled the Gulf Oil Spill. Lastly, BP should be less concerned with their pending lawsuits. They can remain optimistic that many people will apply for compensation rather than go to court. BP’s shareholders are another less important concern. BP canceled the company divided to pledge $20 billion in aid to those affected by the spill.

Why did these companies decide to merge? (Provide detailed information provided in the sources as well as a basic microeconomic explanation.)

Both companies agreed to intend to close the transaction shortly after 2100 hours London time on December 31, 1998, when Amoco’s stock will leave the Standard & Poor 500 and the shares of the merged group, BP Amoco p.l.c., will be listed on the London Stock Exchange. With a market capitalization of more than $140 billion, BP Amoco p.l.c. is the Britain’s biggest company and one of the world’s top three oil majors.

BP or British Petroleum is the largest corporation in the United Kingdom and is an international company that operates in oil, gas and chemical industry. The company is headquartered at London. It owns various refineries as well as chemical plants across the globe. The company produces around 32000,000 barrels of oil daily and operates more than 25K oil service stations across the world with total employee strength up to 85,000. (bp.com, 2015)

A company whose headquarters is based in London, England, BP PLC is one of the market leaders in the petroleum arena; who paired with Halliburton, and Transocean for what was intended to be a mutually beneficial partnership for all companies involved.

The organization is able to produce over 3 millions barrels of oil per day, which contributes to the company’s $227 billion valuation (BP at a Glance).

Known for its risky business ventures, BP quickly became the world 's third largest oil company by acquiring other oil companies such as the Standard Oil of Ohio and Amoco. The company 's rapid

Progressive: BP is always looking for new and better ways to conduct business. It has developed a relationship with Ford to build hydrogen vehicles and fuelling stations in California, Michigan, and elsewhere. BP also has reformulated its BP Amoco Ultimate fuel to reduce air

BP Amoco (now known as BP) is one of the largest most integrated oil companies in the world. Operating in more than 100 counties, in six

Alongside with Shell and ExxonMobil, British Petroleum Amoco (BP) is one of the world‟s largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items. As cited by (Skjaerseth and Skodvin 2001), with the multinational

The core business model of BP involves the exploration of oil and gas resources. It has a very strong and efficient business model that is highly attractive for potential shareholders.