Shell weighs possible BP takeover amid oil sector turbulence
Published: 03:57 05 May 2025 EDT
Britain's oil and gas sector may shrink from two super-majors to just one if weekend reports come to fruition.
According to Bloomberg, Shell PLC (LSE:SHEL, NYSE:SHEL) is exploring the feasibility of a takeover bid for BP PLC (LSE:BP.).
Citing people familiar with the matter, the report suggests advisers have been engaged in early-stage discussions, although a final decision will likely depend on further declines in BP’s share price and crude oil markets.
BP’s stock has fallen more than 30% over the past year, weakened by a faltering strategic shift away from fossil fuels under former chief executive Bernard Looney.
His successor, Murray Auchincloss, has since reversed course, cutting buybacks and recommitting to oil.
His first real set-piece, last week's first-quarter results, failed to wow investors with £1.9 billion wiped from the value of the business on the day of their publication, with profits and net debt underwhelming, while BP's disposal plans failed to stoke investor excitement.
Against this backdrop, BP is struggling with falling oil prices. Earlier in the session, Brent crude for June delivery fell almost 4% after OPEC+ threatened to turn up supplies and flood the market.
Shell, whose market value now more than doubles that of BP, is considering whether to act or wait for another suitor to emerge.
A Shell spokesperson told Bloomberg the group’s focus continues to be on operational discipline and performance. BP reportedly declined to comment.
