BP Amoco Offers to Sell Arco's Alaska Assets Amid FTC Lawsuit

BP Amoco PLC has offered to meet Federal Trade Commission (FTC) demands to sell all of Atlantic Richfield Co.'s (Arco) assets in Alaska in an effort to win government approval to buy Arco. The move comes amid an FTC lawsuit alleging that the proposed purchase would violate the nation's antitrust laws. The case is set to be heard by a federal judge in San Francisco starting March 20.

Key Takeaways:

• BP Amoco has agreed to sell all of Arco's Alaska assets to satisfy FTC demands, following a previous offer to settle the case that was rejected by the company.
• The FTC has sued BP Amoco and Arco in federal court, alleging that the proposed purchase would violate antitrust laws, with a split decision among FTC commissioners.
• The FTC decision to sue was 3-2, with all three Democrats voting to sue and both Republicans voting against.
• The sale of Arco's Alaska assets is subject to finding a qualified purchaser, with an antitrust lawyer stating that it is unclear whether a buyer will be found.
• BP Amoco and Arco are the two largest producers of oil in Alaska, accounting for more than 70% of the state's daily production of 1.1 million barrels per day.

Statistics:

• 70%: The percentage of Alaska's daily oil production accounted for by BP Amoco and Arco.
• 1.1 million: The number of barrels of oil produced daily in Alaska.
• 3-2: The voting margin of the FTC decision to sue BP Amoco and Arco, with all three Democrats voting to sue and both Republicans voting against.

Sources:

• USA Today
• Federal Trade Commission lawsuit (no date or source explicitly mentioned)