Shell denies reports it is in talks to take over BP

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"Shell Refutes Claims of Acquisition Talks with BP"

Shell denies reports it is in talks to take over BP analysis cover image CNN 8.6
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Original Article Source: https://edition.cnn.com/2025/06/25/business/shell-denies-take-over-bp
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Shell has firmly denied a report from the Wall Street Journal that suggested the company was engaged in early discussions to acquire its rival BP. In a statement released on Wednesday, Shell characterized the reports as mere market speculation and emphasized that no negotiations were taking place. The potential acquisition, which would have represented a significant shift in the oil industry, was estimated to be valued around $80 billion, making it the largest oil deal in modern history. Such a merger would have been particularly noteworthy against the backdrop of ongoing geopolitical tensions that threaten the stability of the global oil and gas market.

Despite the speculation, BP's stock experienced a notable increase, rising by as much as 10.5% on the same day, although this surge later subsided. BP has been facing challenges, underperforming compared to Shell over recent years, and has undertaken significant job cuts and reduced investments in clean energy in an effort to stabilize its operations and focus on oil and gas production. Analysts have noted that Shell could benefit from BP's liquefied natural gas portfolio, but also highlighted the need for Shell to enhance its energy transition strategy. As the oil market continues to evolve, both companies are navigating their respective challenges and opportunities in the industry.

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Source URL: https://edition.cnn.com/2025/06/25/business/shell-denies-take-over-bp

Shell rebuffed aWall Street Journal reportthat said the oil giant was in early talks to take over its rival company BP.

“This is further market speculation. No talks are taking place,” the company said in a statement Wednesday.

It would be the largest oil deal in modern times as BP is valued around $80 billion, the WSJ reported. It would’ve been the mega-deal of the year between two rival oil corporations, as geopolitical tensions threaten to jeopardize the broader oil and gas market.

“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,” the company said in its first statement to CNN. BP declined to comment.

BP stock had risen as much as 10.5% Wednesday, though the rise has tapered.

Bloombergfirst reportedon the speculation of a takeover in May. BP has been struggling, underperforming Shell by 17% over the past year and 84% over the past 5 years, according to a Capitol Markets research report. But Shell stands to benefit from BP’s liquified natural gas portfolio, and the Capitol Markets report said Shell still needs to work on its energy transition strategy as well as the longevity of its crude oil and natural gas portfolio.

BPaxedthousands of jobs in January andcut its investments in clean energya month later, aiming to grow its oil and gas production instead. The company’s stock plummeted almost 16% over 2024 as it floundered and attempted toease investors’ concernsover its ownenergy transition strategy.

CNN’s Anna Cooban contributed to this report.

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Source: CNN