Shell Denies Speculation on BP Takeover

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--British energy company Shell plc (London, England) on Thursday denied media speculation that it was making a bid for rival BP (London, England), saying regional laws prohibit such action.

Citing "people familiar with the matter," The Wall Street Journal on Tuesday claimed an exclusive by reporting that Shell was in early-stage talks to acquire BP. Combining the two supermajors "would be the largest deal in a generation," the report read.

On Thursday, however, Shell issued a statement categorically denying the report.

"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 statement read.

Shell cited laws in the United Kingdom that prevent it from making an offer for BP. The report in the Journal valued the company at around $80 billion. BP had no public comment on either the media report or Shell's response.

The industry is in something of an era of consolidation, with the mega-merger between Chevron Corporation (Houston, Texas) and Hess Corporation (New York, New York) still in the works. A lackluster economy, meanwhile, has created headwinds for the oil and gas sector, all while investors are demanding more shareholder returns.

Shell reported adjusted net earnings of $3.6 billion for the first quarter, compared to $5.6 billion during the fourth quarter of 2024. The company repurchased $2.2 billion of shares from stakeholders in the first quarter and announced it would ramp that up to $3.5 billion in the second quarter.

BP, for its part, reported $982 million in profit on sales of about $48 billion, well below its results for the same period in 2024. Murray Auchincloss, the company's chief executive officer, said a lower-for-longer outlook on crude oil prices and economic headwinds were cause for concern.

"Following the introduction of global tariffs, and related government responses, there has been increased market volatility driven by rising concerns around the potential impact of a weaker economic outlook," he said in the first-quarter release.

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