Shell weighs BP takeover bid
Shell is reportedly weighing a takeover bid for struggling rival BP in what could lead to one of the biggest deals in the history of the oil and gas industry.
The oil major is understood to have appointed advisers in recent weeks to discuss the feasibility of a move for BP, which could lead to one of the biggest deals in the history of the oil and gas industry.
Speculation comes as the FTSE 100 giant faces increasing pressure to turnaround its ailing share price, which has fallen more than 30 per cent in the last 12 months.
BP in February announced plans to dramatically scale back its investment in renewable energy and prioritise oil and gas production as part of a major strategic overhaul.
Chief executive Murray Auchincloss made the decision just a fortnight after notorious activist investor Elliot Management took a £3.8bn stake in the company.
Debate over BP’s climate goals has created a rift among shareholders at a time when industry rivals Shell and Equinor have all dialled down investment in renewables.
Last month, the firm suffered a historic protest vote against the re-election of outgoing chair Helge Lund, who was appointed in 2020 to oversee BP’s green pivot, in the clearest signal yet of investor disquiet.
According to Bloomberg, Shell is still waiting for further stock and oil price declines before making a firm decision on whether to pursue a bid for BP.
A final decision will likely depend on whether the stock continues to slide, sources said. They added that other energy firms had also been analyzing a possible bid for BP.
“As we have said many times before, we are sharply focused on capturing the value in Shell through continuing to focus on performance, discipline and simplification,” a spokesperson for Shell said.
BP has been approached for comment.