Shell eyes BP acquisition as oil prices slide further
The global fuel giant Shell is analysing the possibility of acquiring BP. According to Bloomberg, Shell is waiting for further declines in stock prices and oil. The acquisition could make Shell a dominant player in the industry.
Shell, one of the oil giants, is working with advisors to assess the possibility of acquiring its rival BP. According to Bloomberg, citing "people familiar with the matter," the company is waiting for further declines in oil and stock prices before deciding to make such an offer.
Giants to join forces? A merger in the fuel market is on the way
Currently, Shell is significantly larger than BP, with a market value of approximately $246 billion CAD. BP's market capitalisation, as reported by Bloomberg, amounts to about $93 billion CAD. Shell's CEO, Wael Sawan, in an interview with the "Financial Times," admitted that the company still needs to sort out its internal matters before undertaking significant acquisitions.
The acquisition of BP by Shell could significantly strengthen the company's position in the global energy market, allowing it to compete with giants like Exxon and Chevron. However, such a merger would require regulatory approval due to its scale. Shell may also wait for a move from BP or another competitor before making a final decision.
A representative of Shell told Bloomberg that the company is focused on efficiency and discipline. It was noted that an alternative to the merger could be a stock buyback. BP declined to comment on the matter.
