BP/Amoco deal gets go-ahead

THE US Federal Trade Commission yesterday gave a conditional green light to the merger between British Petroleum and Amoco Corporation.

The deal, which will create the largest company in the UK, is expected to be concluded imminently. The new company, to be called BP-Amoco, will also be the third largest oil company behind Exxon and Royal Dutch/Shell.

With a market capitalisation in excess of $140bn (pounds 84bn), it will constitute between 7 and 8 per cent of the FTSE100 index.

The merger is conditional on the two companies disposing of 134 gas stations and nine petroleum storage terminals within the next six months. They must also allow 1,600 independently-owned stations to change their gas brands.

"Although the merger of BP/Amoco involves companies of great size, the operations of these two companies rarely overlap in a way that threatens competition," said Robert Pitofsky, commission chairman.