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Case
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Reference no. 9-201-052
Published by: Harvard Business Publishing
Originally published in: 2000
Version: 1 November 2000

Abstract

On 11 August 1998, United States' Amoco Corp (NYSE: AR) and the British Petroleum Co (BP), plc (NYSE: BP), announced the BPC merger with Amoco. This deal was the largest industrial merger to date, and created the world's third-largest oil company, BP (NYSE: BP). This case focuses on the issues surrounding the integration of the employee-defined contribution plans at Amoco and the U.S. subsidiary of BP. One of them was that the pre-merger plans had very different investment structures. While Amoco had offered its employees only low-cost index funds, BP America had relied on actively managed mutual funds. The new plan, which would have more than 40,000 participants and $7 billion in assets, would have to either choose one of these approaches, or try to integrate them into one single structure.
Location:
Industry:
Other setting(s):
1999

About

Abstract

On 11 August 1998, United States' Amoco Corp (NYSE: AR) and the British Petroleum Co (BP), plc (NYSE: BP), announced the BPC merger with Amoco. This deal was the largest industrial merger to date, and created the world's third-largest oil company, BP (NYSE: BP). This case focuses on the issues surrounding the integration of the employee-defined contribution plans at Amoco and the U.S. subsidiary of BP. One of them was that the pre-merger plans had very different investment structures. While Amoco had offered its employees only low-cost index funds, BP America had relied on actively managed mutual funds. The new plan, which would have more than 40,000 participants and $7 billion in assets, would have to either choose one of these approaches, or try to integrate them into one single structure.

Settings

Location:
Industry:
Other setting(s):
1999

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