Shell denies report of BP takeover talks

Shell has denied it is in talks with BP over a possible takeover of its smaller rival.

The Wall Street Journal, citing a number of sources, reported on Wednesday evening that discussions between the two UK-based energy firms were at an early, but active, stage.

The US publication added that BP was considering the approach.

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Its story was published soon after the London Stock Exchange had closed for the day, but US-listed depository shares in BP were 10% up in New York shortly after publication, while those for Shell were down.

However, Shell responded to the story by telling Sky News: "This is further market speculation. No talks are taking place.

"As we have said many times before, we are sharply focused on capturing the value of Shell through continuing to focus on performance, discipline and simplification."

The rally for BP shares fell back in the wake of the statement. BP declined to comment.

The company has been widely seen as a possible takeover target for years, as its market value has lagged behind the growth of industry peers.

It was valued at nearly £59bn as of Wednesday, while Shell had a market capitalisation of over £153bn.

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The gulf between them has widened since 2020, when BP, under the then-chief executive Bernard Looney, embarked on a fundamental shift towards a green energy future.

The lofty ambitions were slowly chipped away following record leaps in oil and natural gas costs in the wake of Russia's invasion of Ukraine.

Much of the strategy was overturned in a reset by current boss Murray Auchincloss in February this year, under pressure from shareholders.

BP's debt pile has been seen as a potential barrier to takeover interest.

Dan Coatsworth, investment analyst at AJ Bell, said of the report: "Shell buying BP is second only to a bid for ITV as the perennial takeover talk that won't go away. The fact rumours keep circulating might suggest there is some truth in the matter, be it Shell or someone else looking to buy the UK oil and gas producer.

"This is a difficult one to call. All big companies will look hard at any acquisition opportunities in their sector that could greatly increase their size and scale. Ultimately, it comes down to price and whether the rewards outweigh the risks.

"Shell says it hasn't been actively considering an offer, but that doesn't mean it won't do so in the future."

(c) Sky News 2025: Shell denies report of BP takeover talks