25th Jun 2025 20:07
(Alliance News) - Shell PLC has denied it is in talks to acquire rival BP PLC after speculation about a deal that would combine the UK’s two biggest oil companies.
"This is further market speculation. No talks are taking place," a Shell spokesman told AFP, adding that the firm was focused on adding value by improving its performance.
BP declined to comment.
The Wall Street Journal earlier Wednesday said its sources indicated that the two firms had held "early talks" about merging their operations.
WSJ sources said talks between company representatives are active and BP is considering the approach carefully.
Potential terms of any deal couldn't be learned, and a tie-up is far from certain, the WSJ said, adding discussions are moving slowly.
BP has struggled after an ill-fated push away from fossil fuels into renewable energy.
Activist investor Elliott Investment Management, which owns more than 5% of BP's shares, has pushed for changes at the energy company since at least February, underscoring the oil and gas producer's exposure to a potential takeover bid from a rival.
BP is also in the process of trying to sell its lubricants business that operates under the Castrol brand and has indicated it could unload at least part of its solar unit, Lightsource. More recently, BP said that its Chair Helge Lund, a key architect of the company's low-carbon strategy, plans to step down.
A deal would rival the USD83 billion megamerger that created Exxon Mobil Corp at the turn of the century and would be the largest deal of the year.
In May, Bloomberg also reported Shell was considering making a bid for BP.
Shares in BP closed down 0.8% at 365.10 pence each in London on Wednesday for a market value of GBP57.62 billion. In New York, BP was trading 1.7% higher at USD30.34.
Shell closed down 0.8% at 2,566.00p for a market value of GBP150.89 billion.
By Jeremy Cutler, Alliance News reporter
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