Bp/Amoco Merger Acquisition
| BP Amoco/Arco Merger | Merger and Acquisitions Term Paper | | | 12/10/2012 |
|
Contents Time Line of Events 3 Introduction 4 Industry Analysis 5 Overview of ARCO 's Business 7 Overview of BP Amoco’s Business 7 Value Creation from the Merger: 8 Competitors Analysis 9 Antitrust Issues 11 FTC Arguments 12 What Happened? 14 Divestitures 14 Phillips Acquires ARCO Alaska 15 FTC dissent 16 Performance and key Financials 17 Annual Shareholder’s meeting: 19 Conclusion: 20
Time Line of Events April 01, 1999: Merger confirmed by BP & ARCO. Deal valued at $26.8 bill. 400 layoffs expected in AK (2000 worldwide); Gov. announces formation of task force consisting of Attorney General Bruce Botelho, Department of Revenue Commissioner Wilson Condon, and DNR Commissioner John Shively. | | April 12, 1999: Open letter from BP Exploration Alaska and ARCO Alaska executives promising: * BP will invest $5 bill in North Slope development over next 5 yrs; * BP will increase financial support to community organizations by 50% over BP 's & Arco 's current level; * BP will make Alaska the centerpiece of its global gas activities to commercialize North Slope gas; * BP will honor all current agreements with ARCO 's contractors & suppliers; * Organized labor will play important part in slope construction activities; * BP will work cooperatively & collaboratively w/ all levels of government; * BP will continue its efforts to provide jobs & business opportunities for Alaskans whenever possible; * BP will be composed of equal numbers of BP & Arco employees. April 16, 1999: Legislature forms Joint Special Committee on Mergers to analyze merger. The Committee is chaired by Senator Rick Halford (R-Chugiak) | | June 11, 1999: Merger committee hosts meeting for status report to the Legislature and the public from Bruce Botelho, BP and ARCO and takes public testimony.June 24, 1999: Senator
|
Contents Time Line of Events 3 Introduction 4 Industry Analysis 5 Overview of ARCO 's Business 7 Overview of BP Amoco’s Business 7 Value Creation from the Merger: 8 Competitors Analysis 9 Antitrust Issues 11 FTC Arguments 12 What Happened? 14 Divestitures 14 Phillips Acquires ARCO Alaska 15 FTC dissent 16 Performance and key Financials 17 Annual Shareholder’s meeting: 19 Conclusion: 20
Time Line of Events April 01, 1999: Merger confirmed by BP & ARCO. Deal valued at $26.8 bill. 400 layoffs expected in AK (2000 worldwide); Gov. announces formation of task force consisting of Attorney General Bruce Botelho, Department of Revenue Commissioner Wilson Condon, and DNR Commissioner John Shively. | | April 12, 1999: Open letter from BP Exploration Alaska and ARCO Alaska executives promising: * BP will invest $5 bill in North Slope development over next 5 yrs; * BP will increase financial support to community organizations by 50% over BP 's & Arco 's current level; * BP will make Alaska the centerpiece of its global gas activities to commercialize North Slope gas; * BP will honor all current agreements with ARCO 's contractors & suppliers; * Organized labor will play important part in slope construction activities; * BP will work cooperatively & collaboratively w/ all levels of government; * BP will continue its efforts to provide jobs & business opportunities for Alaskans whenever possible; * BP will be composed of equal numbers of BP & Arco employees. April 16, 1999: Legislature forms Joint Special Committee on Mergers to analyze merger. The Committee is chaired by Senator Rick Halford (R-Chugiak) | | June 11, 1999: Merger committee hosts meeting for status report to the Legislature and the public from Bruce Botelho, BP and ARCO and takes public testimony.June 24, 1999: Senator
Bibliography: CIBC World Markets, Equity Research, “BP Amoco p.l.c” (November 8,1999)-Thomson One Salomon Smith Barney, Equity Research, “ Oil Companies-International” (May 16,2000) Salomon Smith Barney, Equity Research, “Oil Companies Major” (March 30,2000) Salomon Smith Barney, Equity Research, “Oil Companies Major” (November 9,1999) Standard &Poor’s, Industry Survey, “ Oil&Gas: Production and Marketing), 1999 MergerStat, 2012 FactSet Research Systems Inc.