Case | HBS Case Collection | October 2000 (Revised November 2000)

Harmonized Savings Plan at BP Amoco, The

by Luis M. Viceira

Abstract

On August 11, 1998, United States' Amoco Corp. (NYSE: AR) and the British Petroleum Co. (BP) p.l.c. (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 premerger plans had very different investment structures. Whereas 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 integrate them into one single structure.

Keywords: Financial Strategy; Mergers and Acquisitions; Compensation and Benefits; Energy Industry; North and Central America;

Citation:

Viceira, Luis M. "Harmonized Savings Plan at BP Amoco, The." Harvard Business School Case 201-052, October 2000. (Revised November 2000.)