1887
Volume 16, Issue 9
  • ISSN: 0263-5046
  • E-ISSN: 1365-2397

Abstract

The mega merger announced in August between BP and Amoco seems to make perfect sense but does it harbinger further consolidation? Andrew McBarnet reports. No one predicted it, but the outcome has a resounding logic which begs the question as to whether other companies will follow suit. When it was announced on 11 August, the BP move to effectively take over Amoco was greeted with almost unadulterated praise with about the only dissenting voice coming from the Mayor of Cleveland, Ohio worried about the effect on jobs in his neck of the woods. The deal, which is not regarded as a problem for regulators in either the US or Europe, will create a company with a combined market capitalization variously estimated between $110 and $125 billion. Whatever the figure, it is believed to be the largest ever industrial merger which in the process turns BP into Britainís largest company. BP is buying Amoco for $49 billion (in stock) which overtakes the pending $40.5 billion purchase (in stock) of the Chrysler Corporation by Daimler-Benz. What the two deals have in common, however, is a European giant flexing its muscles in the USA.

Loading

Article metrics loading...

/content/journals/0.3997/1365-2397.16.9.26171
1998-09-01
2024-03-28
Loading full text...

Full text loading...

http://instance.metastore.ingenta.com/content/journals/0.3997/1365-2397.16.9.26171
Loading
  • Article Type: Research Article
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error