Royal Dutch Shell has denied it is considering buying BP, citing UK rules that ban its bid for the next six months. The denial comes after a Wall Street Journal report citing sources about ongoing talks between the two companies.
BP’s share price has underperformed its peers in recent years, with the company facing challenges in transitioning to renewable energy. Shell CEO Wael Sawan has previously stated that buying back own shares is a better use of money than making an acquisition.
Under UK regulations, any bidder for BP would be subject to a six-month ban if they intend to acquire more than 30% of the company’s shares. If another bidder emerges or BP invites an offer, this ban can be shortened.
Activist hedge fund Elliott holds a stake above 5% in BP and is reportedly pushing for cost cuts and further investments to improve profitability. Analysts say that any merger between Shell and BP would require a significant rewrite of the investment case, potentially eroding shareholder confidence.
Despite ongoing takeover speculation, Shell’s denial of interest in acquiring BP suggests that no deal is imminent.
Source: https://www.reuters.com/business/energy/shell-says-it-is-not-considering-buying-bp-uk-rules-ban-bid-6-months-2025-06-26