Bull Hedging
  • Politics
  • Stocks
  • Business
  • Investing
  • Politics
  • Stocks
  • Business
  • Investing

Bull Hedging

Investing

Shell Denies Interest in BP Takeover, Freezing Potential Deal for Six Months

by admin June 27, 2025
June 27, 2025
Shell Denies Interest in BP Takeover, Freezing Potential Deal for Six Months

Shell (NYSE:SHEL) has moved quickly to shut down speculation about a takeover bid for BP (LSE:BP,NYSE:BP), issuing a formal statement under the UK Takeover Code.

According to the company, no talks have taken place and it has no intention of making an offer.

“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 company said in a statement released Thursday (June 26) morning.

The clarification came after the Wall Street Journal reported that Shell was in early stage discussions to acquire BP, citing unnamed sources familiar with the matter.

The report characterizes the potential tie up as a “landmark combination” of two supermajor oil companies — one that could rival Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) in scale and reach. It would also represent the largest corporate oil merger since the US$83 billion creation of ExxonMobil at the turn of the century.

Shell’s formal denial triggers Rule 2.8 of the UK City Code on Takeovers and Mergers, barring it from making a bid for BP for the next six months, except under limited circumstances — such as BP inviting an offer, a third-party bid emerging or a material change in circumstances. In doing so, it quells investor anticipation about an energy mega-merger.

“This is a statement to which Rule 2.8 of the Code applies and accordingly Shell confirms it has no intention of making an offer for BP. As a result, Shell will be bound by the restrictions set out in Rule 2.8 of the Code,” the company states.

BP shares react, market speculation continues

The Journal’s report briefly pushed BP shares higher on Wednesday (June 25) before Shell’s denial tempered gains.

As of Thursday, BP’s share price remains one of the most underperforming among major oil companies, still lagging behind competitors after its much-criticized 2020 strategy to shift away from fossil fuels and ramp up its focus on renewables — an approach it has recently walked back.

BP’s market cap currently stands at around US$80 billion. Factoring in a takeover premium, any bid would likely surpass that amount, placing it as potentially the biggest deal of 2025 and the largest in the energy sector in decades.

Shell, which has a market value exceeding US$200 billion, would have to weigh substantial integration and regulatory challenges in any potential transaction. As mentioned, the company would be able to revisit a bid if BP’s board invites it, or if a third-party competitor steps forward, keeping the door technically and legally open.

Fueling the acquisition rumors is mounting pressure from activist hedge fund Elliott Investment Management, which holds over 5 percent of BP’s shares. Elliott has pushed for sharper cost discipline and improved shareholder returns at the company, criticizing what it views as BP’s inconsistent strategy.

In response, BP has taken steps to refocus on core hydrocarbons. It has boosted oil and gas production targets, slashed clean energy investments and begun unloading non-core businesses. The company is in the process of selling its Castrol-branded lubricants division and is exploring divestment from its solar joint venture, Lightsource BP.

BP also announced earlier this month that Chairman Helge Lund — seen as the architect of the company’s now-receding green transition — is set to step down. The leadership shakeup adds to speculation that BP is becoming more receptive to investor demands and, potentially, corporate consolidation.

Whether or not a Shell-BP deal ever materializes, the broader M&A wave sweeping the oil and gas sector shows no signs of slowing. Chevron is in the process of finalizing its US$53 billion acquisition of Hess (NYSE:HES), though that deal faces legal challenges from Exxon Mobil, which holds overlapping interests.

Exxon itself completed a US$60 billion purchase of Pioneer Natural Resources last year. Diamondback Energy’s (NASDAQ:FANG) US$26 billion acquisition of Endeavor Energy Resources in the Permian Basin also reflects the growing appetite for consolidation in an industry facing long-term cost pressures and uncertain regulatory futures.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

previous post
Blue Lagoon Resources Added to CSE25 Index – Recognized Among 25 Largest Companies on the Canadian Securities Exchange
next post
Carbonxt Increases Stake in Kentucky Facility

Related Posts

S&P Global: Mining Sector Sees Mixed Q1, Next...

May 18, 2025

What Comes After ETFs? The Case for Tokenized...

May 30, 2025

LU7 Announces Strategic Partnership with Polyechnique Montréal

February 12, 2025

Silver47 Closes First Tranche of Non-brokered Private Placement

March 6, 2025

Lithium Market Update: Q2 2025 in Review

July 22, 2025

Canadian Securities Exchange to Acquire National Stock Exchange...

May 22, 2025

Joint Venture Secured over Advanced Gold Project in...

February 12, 2025

John Hancock to join White Cliff Minerals Board

June 24, 2025

Silver Price Update: Q2 2025 in Review

July 17, 2025

Massan Resource Drilling Confirms High Grade Continuity

September 30, 2025

Recent Posts

  • The Real Drivers of This Market: AI, Semis & Robotics
  • S&P 500 Breaking Out Again: What This Means for Your Portfolio
  • Israel identifies remains of 10th deceased hostage handed over by Hamas
  • REBECCA GRANT: How Tomahawks work and how they could change everything for Ukraine
  • Tesla’s self-driving cars under fire again

Recent Comments

No comments to show.

About Us

About Us

Design Magazine

Welcome to Design Magazine. Follow us for daily & updated design tips, guide and knowledge.

Stay Connect

Facebook Twitter Instagram Pinterest Youtube Email

Recent Posts

  • The Real Drivers of This Market: AI, Semis & Robotics

    October 19, 2025
  • S&P 500 Breaking Out Again: What This Means for Your Portfolio

    October 19, 2025
  • Israel identifies remains of 10th deceased hostage handed over by Hamas

    October 19, 2025
  • REBECCA GRANT: How Tomahawks work and how they could change everything for Ukraine

    October 19, 2025
  • Tesla’s self-driving cars under fire again

    October 19, 2025
  • From Israel to Ukraine, Trump spends week focused on navigating global conflicts

    October 19, 2025

Editors’ Picks

  • 1

    Small Caps are Set to Skyrocket in 2025—Here’s What You Need to Know

    December 12, 2024
  • 2

    Ad revenue should stabilize for media companies in 2025 — if they have sports

    December 31, 2024
  • 3

    Trump leaves China guessing what his next move is with unusual inauguration invitation

    December 15, 2024
  • 4

    Lead Price Forecast: Top Trends for Lead in 2025

    January 11, 2025
  • 5

    Uranium Price Forecast: Top Trends That Will Affect Uranium in 2025

    December 19, 2024
  • 6

    Zinc Stocks: 4 Biggest Canadian Companies in 2025

    January 15, 2025
  • 7

    Trudeau declares himself ‘proud feminist’ after lamenting Harris loss to Trump as setback for women

    December 13, 2024
Promotion Image

banner

Categories

  • Business (579)
  • Investing (2,215)
  • Politics (2,711)
  • Stocks (850)
  • About us
  • Contacts
  • Privacy Policy
  • Terms and Conditions
  • Email Whitelisting

Disclaimer: bullhedging.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


Copyright © 2025 bullhedging.com | All Rights Reserved