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Exxon, Mobil hurdles remain
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August 27, 1999: 5:21 a.m. ET
Oil groups may have to accelerate asset sales to clear merger plan; approval is near
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LONDON (CNNfn) - European regulators said Friday that they remain at odds with Exxon and Mobil over their approval of the oil groups' planned $77 billion merger as they reach the final stages, but that they expect to approve the deal.
The U.S. firms are seeking to broker a deal with antitrust officials at the European Commission in Brussels which will allow the deal to pass regulatory hurdles in Europe and the United States by the end of September.
The Commission is the executive arm of the European Union.
Commission officials said Friday that they remain unsatisfied with the companies' proposed timetable of asset sales needed to curb antitrust issues.
"The discussions [with Exxon and Mobil] are reaching their final stages, so they are bound to be difficult," a senior Commission official told CNNfn.com.
However, he said the companies have made concessions, and Karel Van Miert, acting competition commissioner in Brussels said Thursday that the two sides are "geared toward a positive outcome".
The Commission published a list of its concerns about the deal in June, which included concentration in the natural gas sector and the competitive impact of a marketing joint venture between Mobil and BP Amoco. Mobil may consider selling its stake in that deal.
Analysts have said BP Amoco is the only plausible buyer of Mobil's stake and the two companies have been in discussions about buying out Mobil's holding. However, the U.S. groups are keen to avoid a hurried "fire sale" of assets in Europe which could depress the price they fetch.
European officials have already signaled their intention to clear BP Amoco's $25.7 billion purchase of Arco. The Commission said Friday that it had concluded the recent rash of oil mergers did not create concerns about the impact of concentration in upstream exploration and production in Europe. 
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