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Shell PLC on Thursday formally denied a press report that it is in talks to buy rival oil major, BP PLC. ‘In response to recent media speculation Shell wishes to clarify that it has not been actively considering making an offer for BP and confirms it has not made an approach to, and no talks have taken place with, BP with regards to a possible offer,’ the London-based energy company said in a statement. ‘Shell confirms it has no intention of making an offer for BP,’ the company added. Shares in BP were marginally lower at 364.35 pence in London on Thursday morning. Shell was up 0.2% at 2,568.50p. On Wednesday, the Wall Street Journal said Shell was holding early stage talks to acquire BP. WSJ sources said talks between company representatives are active and BP is considering the approach carefully. Back in May, Bloomberg had said Shell was exploring a move for BP but waiting for BP’s share price to fall further. BP has struggled after an ill-fated push away from fossil fuels into renewable energy. BP’s share price has fallen 23% in the past 12 months, underperforming Shell which has fallen 8.2% in the same time. Activist investor Elliott Investment Management, which owns more than 5% of BP’s shares, has pushed for changes at the energy company since at least February, underscoring the oil and gas producer’s exposure to a potential takeover bid from a rival. BP is also in the process of trying to sell its lubricants business that operates under the Castrol brand and has indicated it could unload at least part of its solar unit, Lightsource. More recently, BP said Chair Helge Lund, a key architect of the company’s low-carbon strategy, plans to step down. Derren Nathan, head of equity research, Hargreaves Lansdown explained that structurally lower oil prices are causing the majors to look at their options. But he thinks given Shell’s superior asset quality and balance sheet, ‘any combination may be difficult for its shareholders to stomach.’ ‘Cherry picking some flagship assets could be another option, but that’s unlikely to satisfy BP investors. For now, the focus for Shell is likely to remain on buying back its own shares,’ he added. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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