BP shares soared as much as 9.30% in the US stock market, as Wall Street Journal (WSJ) report that Shell is in early-stage talks to acquire its London-based rival. While no deal is confirmed and terms remain undisclosed, the news comes amid growing speculation that BP, under pressure from years of underperformance and activist investor Elliott Management, could become a takeover target. Shell has reportedly been exploring the merits of a deal since May, though a spokesperson emphasized the company remains focused on performance and simplification.
If completed, the acquisition would be one of the largest in European history, potentially creating a European oil behemoth capable of rivaling U.S. giants ExxonMobil and Chevron. The combined company would produce nearly 5 million barrels of oil equivalent per day and dominate the liquefied natural gas market. However, analysts warn the deal would be expensive, possibly requiring a 20% premium over BP’s £58 billion valuation, and could raise antitrust concerns in fuel retail markets.
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