Shell Leaves Future BP Takeover Bid on the Table

LONDON, UK – Shell Oil Company hinted it may consider a future takeover bid for rival BP, although it clarified that it is not “actively” pursuing an offer at this time. The announcement came after a Wall Street Journal report stirred speculation about a potential merger between the two energy giants.

A Shell spokesman stated, “In response to recent media speculation, Shell wishes to clarify that it has not been actively considering making an offer for BP and confirms it has not made an approach to, and no talks have taken place with, BP with regards to a possible offer.” Following this statement, Shell is precluded from bidding for BP for six months due to UK takeover regulations.

However, exceptions exist that could enable a deal, particularly if another company attempts to acquire BP. Takeover discussions have been a long-standing topic between Shell and BP, a dynamic that could face resistance from BP’s British shareholders.

Currently, BP’s market value stands at approximately £57 billion, while Shell is valued at £153 billion. Dan Coatsworth, an analyst with AJ Bell, commented, “Shell says it hasn’t been actively considering an offer, but that doesn’t mean it won’t do so in the future. BP is a sitting duck and an obvious takeover target.”

Coatsworth also noted that if Shell does not act, it’s likely another company will, which could raise significant governmental concerns. A takeover by Shell would maintain British ownership of BP, but it might lead to job losses.

Earlier reports indicated that Shell had brought in advisors to assess a potential offer but was awaiting a drop in oil prices and BP’s valuation before taking action. In a prior statement, Shell’s CEO Wael Sawan had acknowledged that although a takeover wasn’t off the table, the barriers for such a deal were “very high.”