In the British oil industry there could soon be a mega takeover.
Shell is working with consultants to examine the possible purchase of BP, the Bloomberg news agency reported at the weekend, citing the matter. BP is currently being rated on the stock exchange at the equivalent of almost 66 billion euros. Shell is currently a good 175 billion euros. Together, the stock exchange assessment reaches almost the entire economic performance of Portugal. However, a noticeable surcharge on the last share price is common when taking over, so that the country could also be overtaken.
Shell is waiting for a further decline in the BP share price and oil prices, it continued in the circles. The BP paper has lost almost a third within a year. At the end of April, CEO Murray Angin Close again disappointed investors with a further reduction in stock returns. They are considered an important factor that makes the industry attractive to investors. A cash inflow and increasing debt due to poorer business make it increasingly difficult to release money to shareholders.
The company is also criticized because of the 180-degree turn to the oil and gas business, which was also carried out by competitors. Innclos predecessor Bernard Looney also wanted to significantly expand the alternative energies area. The US hedge fund Elliott Management brings additional unrest to the company. This now keeps a larger stock position and requires stronger cost reductions. In addition, the group should sell further parts of the company and accumulate more cash. According to the investor, BP is to generate a free cash inflow of $ 20 billion by 2027 – this is about 40 percent above the company’s current goal.
The oil prices were fell by a good fifth in terms of a barrel of the WTI variety within a year. There are several reasons for this. Again and again fears about a slump in the global economy due to US customs policy burden prices. In April, the announcement of a significant increase in the amount of funding by Opec+, in which, in addition to Opec countries, other important oil states such as Russia are also organized down the market. On Saturday, the group agreed on a further increase.
Shell has discussed feasibility and advantages of taking over in the past few weeks with its advisors, the districts said. A final decision should depend on the development of the BP share course. The considerations were in an early stage and Shell could also decide to concentrate on stock returns and smaller takeovers.
According to the news agency, a Shell spokesman repeated earlier statements from the company. BP did not want to comment.
/hey
New York (dpa-Afx)
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