Shell denies report of acquisition talks with BP

June 26, 2025 (MLN): Shell has denied a report by The Wall Street Journal claiming the company is in early talks to acquire rival oil giant BP. “This is further market speculation. No talks are taking place,” Shell said in a statement.

The WSJ had reported that a deal between the two companies, valuing BP at approximately $80 billion, would mark the largest oil industry acquisition in modern history.

The report surfaced amid growing geopolitical tensions that could impact the global oil and gas market, according to Bloomberg.

In a separate statement to CNN, Shell reiterated its commitment to “capturing the value in Shell through continuing to focus on performance, discipline and simplification.”

BP declined to comment on the matter. Following the news, BP’s stock surged by as much as 10.5% on Wednesday before retreating.

Bloomberg had first reported speculation of a possible takeover in May. According to an RBC research report released last month, BP has underperformed Shell by 17% over the past year and 84% over the past five years.

While Shell could benefit from BP’s liquified natural gas portfolio, the RBC report noted Shell must still refine its energy transition strategy and ensure the sustainability of its crude oil and natural gas assets.

BP has faced difficulties recently, cutting thousands of jobs in January and scaling back clean energy investments the following month in favor of expanding oil and gas production.

The company’s stock fell nearly 16% in 2024 as it struggled to reassure investors about its transition strategy.