BP plc · LSE:BP.
BP — BP Amoco p.l.c. — Merger or Acquisition (March 2000)
13 slides from BP's merger presentation, Mar 14, 2000
Slide 1: Mergers and acquisitions – Burmah Castrol
Mergers and acquisitions – Burmah Castrol Burmah Castrol strategy presentation - London, March 14, 2000 Disclaimer The Directors of BP Amoco p.l.c. accept responsibility for the information contained in this document and, to the best of their knowledge and belief (having taken all reasonable care to
Slide 2: Opportunity to deliver additional growth in a consumer-focused business
It gives us a tremendous opportunity to deliver additional growth in a business principally focused towards the consumer. Castrol is one of the world's great brands. Castrol brands have a global market share of 5 per cent in the lubricants business and are a leading brand in over 50 countries around
Slide 3: Platform for growth
Platform for growth Good morning, Ladies & Gentlemen. I am delighted to have this opportunity as Chief Executive Officer "to be" of our new global Lubricant organisation to build on what John and Jonathan have already said about this tremendous platform for growth, benefiting from great brands with
Slide 4: Brand and marketing expertise
Brand and marketing expertise It means, as John said, that following this combination, we will have a company with a leading brand , and with universally acknowledged marketing expertise, which is also competitively distinctive. We will have real global reach and scale and the means to accelerate ou
Slide 5: Castrol's brand rests on far more than advertising and Formula One
Castrol's brand rests on far more than its well-known advertising, and its involvement in such events as Formula One. From my standpoint, it symbolises marketing excellence based on a passion for meeting customer needs. Castrol also have a formidable in-house R&D capability to provide technological
Slide 6: Strong customer relationships at BP Amoco and Castrol
Both Castrol and BP Amoco have, over many years, enjoyed strong customer relationships, which have underpinned their success. As our customers become increasingly global in nature (and thus in their procurement habits), we can now be all the more flexible in our efforts to support them wherever they
Slide 7: Global reach
Global reach The second strategic driver - and perhaps the most striking - is the global fit of the two enterprises both in a sector and in a geographic sense. First, I'll show you our global position today as BP Amoco before any combination with Castrol. Although we have some significant strengths
Slide 8: Impact of the combination in Europe
So let's see what impact the combination has in Europe. BP Amoco have recently agreed on the extraction of its share of the Lubricants Joint Venture with Mobil. The outcome of that transaction will leave us, firstly, with some 6 per cent of the European market, and in fourth position overall from a
Slide 9: Number two in Europe with 13 per cent market share
The new enterprise takes us to number two in Europe, with an overall market share of some 13 per cent and a far more balanced sector portfolio. Looking again at the world map, with Europe now reflecting the newly combined 13% market share, let's move across the Atlantic and look at North America whe
Slide 10: Castrol's position in the US, Canada and growth markets
Conversely, Castrol have had great success in developing their position in the US and Canada over the past decade. And from now on our company will be one of the leading US coast-to- coast marketers of lubricants, matching our already strong fuels position. Looking at the rest of the world, the Cast
Slide 11: Complete global picture post transaction
Looking at the complete global picture, post transaction, it is evident that we will now enjoy a significant presence on every continent. And importantly, if I were to show you similar comparisons across the different sectors of the lubricants business, the same glove-like fit would be evident. As l
Slide 12: Cost synergies
Cost synergies As I am sure you are aware, no BP Amoco presentation would be complete without talking about cost synergies and these are indeed significant. The savings are driven chiefly by the elimination of duplication in the areas of blend plants, distribution and back office support services. W
Slide 13: Summary
Summary So that summarises the principal reasons why we believe this deal is so compelling. I have described the nature and commercial logic of this very exciting transaction which sees a union of marketing and performance excellence. It brings with it numerous new growth opportunities far in excess