BP and Amoco Announce $67 Billion Merger Creating Britain's Largest Company

Strategic Insights -

The long-anticipated merger between British Petroleum (BP) and US oil giant Amoco is set to create Britain's largest company, worth a staggering $67 billion. The new entity, to be called BP Amoco, will boast combined revenues of $66.26 billion annually, placing it among the top three international oil producers. The merger aims to achieve cost savings of at least $1.23 billion per year by the end of 2000 through staff reductions, more focused exploration, and streamlined business processes.

Key Takeaways:

  • The merged company, BP Amoco, will have a combined workforce of 99,450 staff, with BP employing 56,450 and Amoco employing 43,000.
  • The company will have combined reserves of around 14.8 billion barrels of oil and gas, and daily production of three million barrels.
  • The merger aims to achieve cost savings of at least $1.23 billion per year by 2000 through staff reductions, more focused exploration, and streamlined business processes.
  • BP Amoco will have a prime presence in all main exploration areas and be a leading company in chemicals, petrochemicals, and solar energy.
  • The merged company will list its shares on the London Stock Exchange and have a market value of over $6.82 billion.
  • The merger has been hailed as a positive move for the industry, with Sir John Browne, BP's chief executive, stating that the company will be well-positioned to take on large-scale projects in the future.

Statistics:

  • The merged company, BP Amoco, will have combined revenues of $66.26 billion annually.
  • The company aims to achieve cost savings of at least $1.23 billion per year by 2000.
  • BP Amoco will have combined reserves of around 14.8 billion barrels of oil and gas.
  • The company's daily production will total three million barrels.
  • BP Amoco will employ 99,450 staff, with BP employing 56,450 and Amoco employing 43,000.
  • The merged company's market value will increase by $6.82 billion following the BP share price increase.

Sources:

  • "BP and Amoco agree $67 billion merger" by Ian Burrell, The Independent
  • "BP Amoco to be formed after two huge oil companies merge" by The Sun.