On 11 August, 1998, United States’ Amoco Corporation (NYSE: AR) and the British Petroleum Company (BP) plc (NYSE: BP) announced the merger with Amoco BPC. This deal was the largest industrial merger to date and creates the world’s third largest oil company BP (NYSE: BP). This case focuses on the issues surrounding the integration of the employee-contribution plans with Amoco and the U.S. subsidiary of BP. One of them was that the plans had premerger very different investment structures. While … Read more »

On 11 August, 1998, United States’ Amoco Corporation (NYSE: AR) and the British Petroleum Company (BP) plc (NYSE: BP) announced the merger with Amoco BPC. This deal was the largest industrial merger to date and creates the world’s third largest oil company BP (NYSE: BP). This case focuses on the issues surrounding the integration of the employee-contribution plans with Amoco and the U.S. subsidiary of BP. One of them was that the plans had premerger very different investment structures. While Amoco had his staff offered only low – cost index fund, BP America had to rely on actively managed mutual funds. The new plan, which had more than 40,000 participants and $ 7 billion fortune, would either one of these approaches or integrate them into a single structure.
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Luis M. Viceira
Source: Harvard Business School
17 pages.
Publication Date: Oct 26, 2000. Prod #: 201052-PDF-ENG
Harmonized Savings Plan at BP Amoco HBR case solution