For decades, rumors have been occasionally about a fusion of the two British groups. It would be one of the largest deals in the oil industry ever. The final decision will probably depend on whether the shares of BP will continue to fall, the sources said to Bloomberg at the time.
‘Conversations in full swing’
According to The Wall Street Journal, the conversations between representatives of both companies are in full swing and BP is considering the rapprochement seriously. With the acquisition of BP, Shell would be better able to cope with larger rivals such as ExxonMobil and Chevron.
‘Shell busy taking over rival BP, waiting for a lower oil price’
Shell does not respond to the message itself when asked. “As we have said many times before, we focus sharply on capturing the value in Shell by continuing to focus on performance, discipline and simplification,” said a spokesperson. BP also does not want to comment on the rumors.
Investors responded directly to the article on Wednesday. In the so -called after -trade trade, the shares of Shell fell in value, while the price of BP rose correctly.
Shareholder wants a higher return
BP has already initiated the sale of its lubricant branch Castrol in February. Bidders including several private equity firms would remain less than the $ 8 billion required. According to its plans, BP wants to bring in $ 20 billion with sales of parts. BP shareholder Hedgefonds Elliott demands a considerably higher return from the London neighbor of the Shell that was also British since 2023.
Despite interventions in the group by the new CEO Murray Auchincloss since 2023, the course of BP has fallen 23% in one year. In the same period, Shell is racing 10% lower on the stock market at a 20% lower oil price in that year.