Shell refutes reports it’s in discussions to acquire BP

Shell rebuffed a Wall Street Journal report that said the oil giant was in early talks to take over rival company BP.

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

An agreement between the two rival oil corporations would be the largest oil deal in modern times, with BP valued around $80 billion, the WSJ reported. The report about a potential deal comes 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,” Shell said in a different statement. BP declined to comment.

BP stock had risen as much as 10.5% Wednesday after news of prospective talks, though the rise has tapered.

Bloomberg first reported on 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 RBC research report last month. But Shell stands to benefit from BP’s liquified natural gas portfolio, and the RBC 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.

BP axed thousands of jobs in January and cut its investments in clean energy a 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 to ease investors’ concerns over its energy transition strategy.