Shell Statement About BP: No Plans for Acquisition, Rules Out Immediate Bid

Recently, people started talking about a big change in the oil world. Some news reports claimed that Shell might try to buy BP, one of its biggest rivals. This idea surprised many of us. If it were true, it could have shaken up the global energy market. But Shell didn’t wait long to clear the air.

They made it very clear, they have no plans to buy BP right now. Shell said there’s no deal happening and no bid being made any time soon.

This quick response stopped the rumors for now, but it also raised some big questions. Why did people think it might happen? What would it mean if these two giants ever joined forces? And what does this all tell us about the future of oil and energy?

Let’s study the details, understand why it’s making headlines, and see what the future could hold for both companies.

Background: Shell & BP in Today’s Energy World

Shell is a $284 billion company. It operates in nearly 100 countries. They make oil, gas, LNG, and chemicals.
BP is smaller, with about $80 billion in value. They’ve shifted back and forth between green energy and fossil fuel. Both are global, and both feel pressure. Shell is focused on efficiency and shareholder value. BP is trying to find its footing after pulling back from big renewables bets.

What Sparked the Rumor?

On June 25, WSJ reported that Shell and BP were in “early‑stage talks” about a merger worth over £200 billion.
Investors reacted fast. BP shares spiked 6–10 % that day. Shell’s share ticked down slightly. Analysts pointed to BP’s low valuation and renewed fossil fuel strategy, making the firm a tempting target.

Shell Speaks Out

The next day, Shell sent a statement to the London Stock Exchange:

• They’ve not made any approach to BP.
• No talks have taken place.
• They have no intention of making an offer now.
• This wasn’t a casual comment; it triggered Rule 2.8 of the UK Takeover Code, which bars bids for six months.
• Shell’s CEO Wael Sawan said he’d rather invest in buybacks, Shell has spent $36 billion over three years, than chase a mega‑deal.

Market’s Reaction

Markets cooled after the denial.

• BP shares settled down to around a 1–3 % gain.
• Shell’s shares fell slightly, reflecting renewed focus on its plans.
• Critics of BP, like hedge fund Elliott Management with a 5 % stake, say BP needs cost cuts to avoid future bids.
• Analysts say Shell’s rejection was expected. But some say the idea isn’t dead. If BP’s share price falls further or another bidder appears, things could change.

What If They’d Merged?

A combined Shell‑BP would have pumped about 5 million barrels daily, bigger than Exxon or Chevron. It would hold ~25 % of the global LNG market and a strong U.S. presence.
Synergies could cut costs. But culture and structure differences could take years to integrate.
It would also risk antitrust scrutiny in the UK, EU, and U.S. Political fallout and job cuts would be huge.

Where Shell & BP Go From Here

Shell‘s focus on buybacks and simplifying its business. They still aim to invest in LNG, hydrogen, and trades. BP recently cut 4,700 jobs and dropped some green targets to save costs. BP is returning to oil and gas for now, hoping to win back investor confidence.

Conclusion

Shell has firmly shut down the acquisition rumor and is legally barred from revisiting BP for six months. Yet, this episode shows how tempting BP’s now‑lower valuation can be. We’ll keep watching in the months ahead oil majors are under constant pressure to grow, whether through deals, buybacks, or energy transition bets.

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Disclaimer:

This content is for informational purposes only and not financial advice. Always conduct your research.