Shell has refuted claims that it is in preliminary discussions to acquire fellow energy giant BP, dismissing a report suggesting a potential merger. In an official statement, Shell stated, “This is further market speculation. No talks are taking place.”
Earlier, it was reported that Shell was considering acquiring BP in a deal potentially valued at around $80 billion—an acquisition that would rank among the largest in the history of the oil industry.
The rumors emerged amid rising geopolitical instability, which analysts believe could influence global oil and gas dynamics.
In a separate statement, Shell emphasized its continued focus on enhancing value through performance, operational discipline, and simplification.
BP chose not to comment on the speculation. However, the news triggered a surge in BP’s share price, which rose by as much as 10.5% on Wednesday before settling back.
Initial speculation about a takeover began circulating in May. A recent RBC Capital Markets report noted that BP has significantly underperformed Shell—lagging by 17% over the past year and by 84% over five years.
Although BP’s liquefied natural gas assets could complement Shell’s portfolio, analysts noted that Shell still faces the challenge of refining its energy transition strategy while maintaining the viability of its oil and gas operations.
BP has encountered several setbacks in recent months. In January, the company announced major job cuts and in February scaled back its investments in renewable energy, choosing instead to increase oil and gas output.
The company’s stock fell nearly 16% in 2024 as it struggled to regain investor confidence in its energy transition roadmap.
