Brussels, 19/05/2000 (Agence Europe) - The European Commission has given its clearance for the acquisition of the British lubricants company Burmah Castrol by BP Amoco (BPA), the Anglo-American oil company. The Commission review showed that the combined market share of the BPA/Castrol entity in the European Union will be around 15% for car lubricants and 9% for industrial lubricants, shares comparable to those held by ExxonMobil, Shell and TotalFinaElf. In addition to these operators, there are also on the national markets several integrated national oil companies, and also independent blenders and a number of Original Equipment Manufacturers with proprietary branded lubricants.
The new entity will become, however, the leading international company in the field of marine lubricants, a market that has become highly concentrated as the five major players control 95% of the global market. The high degree of concentration existing on this market has led the Commission to examine whether there was a collective dominant position. It concluded that the market characteristics (tendering, bidding, importance of service, multi-sourcing and strong buyer power from shipping companies, etc.) were not conducive to the creation or strengthening of a single or collective dominance position in the market.
BPA, an integrated oil company active in oil exploration, refining and the production of petrochemicals, had launched, in March, a friendly bid of EUR 4.5 billion (£16.75 per share) on the diversified Burmah Castrol group, active in the production and the marketing of lubricants and finished chemical products. On the strength of the above analysis the Commission decided not to oppose the operation.