Shell (NYSE: Shel) has moved swiftly to close speculation on BP (LSE:BP, NYSE:BP) revenue bids and issued a formal statement under the UK acquisition code.
According to the company, no consultations have been made and there is no intention of making an offer.
“In response to recent media speculation, Shell wants to make it clear that he has not actively considered BP’s offers. said in a statement Released on Thursday (June 26th) morning.
The explanation came later Reported by the Wall Street Journal That shell was an early stage discussion to gain BP, citing an unknown source familiar with the issue.
The report characterizes the potential bond between the “groundbreaking combination” of the two oil companies at Super Mayor. One is the equivalent and reach of Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX). It also represents the largest corporate oil merger since the $83 billion ExxonMobil was created at the turn of the century.
Shell’s official rejection trigger rule 2.8 UK city code for acquisitions and mergersexcept that BP will bid for the next six months, except under limited circumstances, such as BP invite offers, third party bids appearing, or significant changes to the situation. In doing so, it calms investors’ expectations about a huge energy merger.
“This is a statement in which Rule 2.8 of the Code applies, and in response, the Shell confirms that it has no intention of making the BP offer. As a result, the Shell is bound by the restrictions set out in Rule 2.8 of the Code,” the company states.
BP stocks react and market speculation continues
The journal’s report temporarily promoted BP’s stock on Wednesday (June 25) before Shell’s rejection was promoted.
As of Thursday, BP’s stock is one of the least performers of all major oil companies, lagging behind its competitors after a critical 2020 strategy to focus on renewable energy away from fossil fuels. This is the approach I’ve recently returned.
BP’s market capitalization is currently around US$80 billion. Given the acquisition premium, any bid will likely exceed that volume, potentially placing the biggest deals in 2025 and the largest contracts in the energy sector in decades.
With a market value of over USD 20 billion, shells need to weigh substantial integration and regulatory challenges in potential transactions. As mentioned above, if BP’s board of directors is invited, or if a third-party competitor moves forward and leaves the door open technically and legally, the company can revisit the bid.
To promote acquisition rumors Mounting pressure From Elliott Investment Management, an activist hedge fund that holds more than 5% of BP’s stake. Elliott criticizes his view as an inconsistent strategy for driving sharper cost discipline and improved shareholder returns at the company.
In response, BP took steps to refocus the core hydrocarbons. It has supported oil and gas production targets, reduced clean energy investments, and started unloading non-core companies. The company is in the process of selling the Castrol brand’s lubricant division and is investigating the sale from solar joint venture Lightsource BP.
Also, BP announced earlier this month that Chairman Heljulund, considered the architect of the company’s current environmental transition, has been set to step down. The leadership shakeup adds to speculation that BP is becoming more accepting than investors’ demands and potentially corporate integration.
Whether or not the Shell BP trade will come into effect, the broader M&A waves cleaning the oil and gas sector show no signs of slowing down. Chevron is in the process of completing the US$53 billion acquisition of HESS (NYSE: HES), and the deal Faced with legal challenges It holds duplicate profits from Exxon Mobil.
The exon itself is complete Purchase of USD 60 billion of last year’s pioneering natural resources. Diamondback Energy (NASDAQ:FANG) The acquisition of US$26 billion Permian energy resources also reflects the growing desire for integration in an industry facing long-term cost pressures and uncertain regulatory futures.
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Securities Disclosure: I, Giann liguid, do not hold direct investment rights in the companies mentioned in this article.
