WASHINGTON -- The Federal Trade Commission on Wednesday approved the $53 billion merger of British Petroleum Co. and Amoco Corp. after the companies agreed to sell 134 gasoline stations and nine petroleum terminals.
To appease antitrust concerns, the companies also agreed to give owners of more than 1,600 gasoline stations in 30 cities permission to end their contracts.FTC Chairman Robert Pitofsky said the agency was satisfied that "the operations of these two companies rarely overlap in a way that threatens competition."
The FTC voted 4-0 to approve the companies' offer, and its approval becomes final after a 60-day comment period.
The stock merger, announced Aug. 11, is among the largest in history. Chicago-based Amoco is the nation's fifth-largest oil company with roughly 9,300 gasoline stations.
London-based British Petroleum, the world's third-largest oil company, sells its products through a network of about 17,900 stations.
The deal is largely eclipsed by the pending $77.2 merger of Exxon and Mobil, which would combine the biggest U.S. oil companies. Analysts said Exxon and Mobil also probably will have to sell off gas stations and refineries in regions where, together, they would dominate the market.
The FTC said it looked at business areas where British Petroleum and Amoco's operations might overlap and found few reasons for concern.
"Where they do overlap, mainly in wholesale and retail sale of gasoline in local markets in this country, the commission with the cooperation of the companies has achieved substantial divestitures and other relief," Pitofsky said in a statement.