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BP, Amoco face FTC delay
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December 16, 1998: 7:56 a.m. ET
Merger approval may be held up in light of Exxon-Mobil union, antitrust concerns
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NEW YORK (CNNfn) - The U.S. Federal Trade Commission may delay the approval of the proposed $59.9 billion merger between British Petroleum Plc and Amoco Corp. as it seeks additional antitrust concessions from the companies.
The FTC was initially expected to approve the deal with some conditions by the end of the year, but published reports say that the agency is likely to delay approval until next year in light of the recently announced $76.2 billion merger between Exxon Corp. and Mobil Corp.
The FTC is not currently planning to block BP's purchase of Amoco, the reports said, but wants to subject it to further antitrust scrutiny as it reviews the Exxon-Mobil deal.
Among the specific issues the agency wishes to examine further is whether consolidation among the oil industry's biggest players could force a hike in gasoline prices in the United States.
Currently, BP is the world's third largest oil company, and Amoco the fifth. Exxon (XON) and Mobil (MOB) hold the No. 2 and No. 4 positions, respectively.
People familiar with the situation says it is likely the FTC will ask BP and Amoco to take greater steps to prevent anticompetitive effects.
Amoco shareholders have already approved the BP deal, as has the European Union Commission. And both BP and Amoco still say they expect the FTC to approve the deal by year end. The companies do have the option of forcing the FTC's hand by notifying the agency they plan to close their deal, but antitrust lawyers often advise that such a move might invite a backlash.
On Tuesday, shares in Amoco (AN) closed up 1-9/16 to 56-1/8, and the American depositary receipts for BP (BP) posted a gain of 1-13/16 to close at 87-5/16. 
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Amoco
British Petroleum
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