British Petroleum and Amoco Unveil Plans for World's Largest Industrial Merger

British Petroleum and Amoco's proposed merger will create the largest industrial merger in history, resulting in a company worth $A185 billion, with the new entity set to become the third largest oil company in the world. The combined company will have a significant presence in the global petrochemicals market, with a strong strategic and geographical presence. The merger aims to increase pre-tax profits by at least $A3.4 billion by 2000 and promises significant cost savings through staff cuts and operational rationalization.

Key Takeaways:

The merger between British Petroleum and Amoco will create the world's largest industrial merger, worth $A185 billion.
The new company, BP Amoco plc, will hold a 60% stake, while Amoco will hold a 40% stake.
The merger will result in significant cost savings of $A3.4 billion from staff cuts, improved procurement, and operational rationalization.
The combined company will have about 14.8 billion barrels of oil and gas.
The merger aims to increase combined pre-tax profits by at least $A3.4 billion by 2000.
The new company will be led by BP Chief Executive Sir John Browne.
The deal will be financed through the issue of new BP shares on the New York market in the form of American Depositary Receipts.

Statistics:

$A185 billion: the worth of the new company, BP Amoco plc.
60%: the percentage stake held by British Petroleum in the new company.
40%: the percentage stake held by Amoco in the new company.
$A3.4 billion: the expected cost savings from staff cuts, improved procurement, and operational rationalization.
$A3.4 billion: the projected increase in combined pre-tax profits by the end of 2000.
14.8 billion barrels: the total oil and gas reserves of the combined company.

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