PND (11/16/99) -- BP Amoco Pledges $100 Million to California as Part of Merger Deal

Hoping to lessen fears about the local impact of its proposed merger with the Atlantic Richfield Co. (ARCO), London-based BP Amoco has announced that it will make $100 million in charitable contributions over 10 years in California, the Los Angeles Times reports. At the same time, the company acknowledged that it would eliminate some 600 jobs at ARCO's Los Angeles headquarters.

BP Amoco announced on April 1 that it would buy ARCO in a deal valued at approximately $27 billion.

California Governor Gray Davis and state Attorney General Bill Lockyer praised BP Amoco's pledges, but Lockyer said the state is continuing to investigate how the proposed merger would affect California consumers. Lockyer maintains that state law gives him the authority to block a merger if he concludes that it would result in the creation of a monopoly.

According to Davis and BP Amoco CEO John Browne, the 10-year, $100-million commitment from the company represents a 25-percent increase over the approximately $8 million it contributed annually during the past decade. ARCO had budgeted $12 million in 1999 for its corporate giving. Lockyer said he intends to seek a legally binding agreement from the merged company that it would maintain ARCO's tradition of charitable giving.

FCnote: The BP Amoco Foundation (IL) had assets of $69,303,317 and made grants totaling $69,303,317 in the year ending 12/31/98.

FCnote: The ARCO Foundation (CA) had assets of $2,100,000 and made grants totaling $6,895,849 in the year ending 12/31/97.

Brooks, Nancy Rivera. "BP Amoco Makes Pledge of $100 Million in Charity." Los Angeles Times, 11/12/99.

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