US authorities have cleared the $48.2 billion (£32.5 billion) merger between British Petroleum and US-based Amoco on condition that the two firms divest petrol stations and light petroleum products terminals.

Under the proposed agreement, BP and Amoco will divest 134 petrol stations in eight markets and nine light petroleum products terminals, the US Federal Trade Commission said.

In addition, the companies will make it easier for independent retail dealers in 30 markets to switch their petrol stations to other brands. More than 1,600 petrol stations could be affected, the commission said.

In a statement issued in Chicago, Amoco and BP said they intend to close the transaction shortly after 9 p.m. London time today. The European Commission gave its approval to the merger on December 11th on condition that Amoco divests its polyisobutylene operations in Europe, as it has announced it would do.

The marriage of the companies will create the world's third-biggest oil company after the Anglo-Dutch group Shell and Exxon of the United States, which has itself announced a merger with Mobil.

BP and Amoco said the merged company would have a market capitalisation of $140 billion and would be based in London.