EU Clears Exxon-Mobil, BP-Arco Deals

European Union regulators approved Exxon Corp.’s $82-billion purchase of Mobil Corp. after securing antitrust concessions in the deal to create the world’s largest oil company. The EU also gave BP Amoco its blessing to acquire Los Angeles-based Atlantic Richfield Co., with minor conditions. Both deals are still being reviewed by the Federal Trade Commission. Mobil, responding to objections by the European Commission to its proposed merger with Exxon, agreed to withdraw from a 1996 European fuels joint venture with BP Amoco and from Aral, another petrol station venture with Veba of Germany. The divestitures were triggered by EU fears that a combined Exxon-Mobil would not compete against BP Amoco, the other big market player together with Royal/Dutch Shell. A source close to the discussions told Reuters that BP Amoco was set to pay about $1.65 billion for Mobil’s 30% stake in the venture. Exxon and Mobil said they welcomed the commission’s decision and confirmed they would comply with its conditions. To win approval for its purchase of Arco, BP Amoco agreed to sell some pipeline and processing interests to allay fears about creating a dominant position in the transport and processing of North Sea gas, the EU said. The European Commission, the EU’s executive body, said its investigations into the two mergers had dispelled concerns that the recent spate of mega-mergers in the oil sector would create a dangerously small group of big players dominating exploration worldwide.