The BP and Amoco case: an example of a successful merger.
In August 1998 the oil company BP merged with the American giant Amoco in a deal valued at 97 billion euros.
The split that BP and Amoco agreed on was:
- 60% for BP
- 40% for Amoco
The chairmen of the two companies, Peter Sutherland and Larry Fuller, agreed to share the chairmanship. The aim was to consolidate a competitive position in the energy market.
Most of the cost savings came from cutting around 6,000 jobs across the two companies.
It is worth noting that both chairmen of the merged companies were positively involved throughout the merger process.
As soon as the merger was announced, BP’s share price rose sharply on the London Stock Exchange.
Further reading
- A merger headed for failure: AT&T and NCR
- 5 ways to grow your business
- How to become a successful entrepreneur
- What to invest in during a crisis
Featured image: Ken Lund, CC BY-SA 2.0, via Flickr.
