Shell eyes BP takeover amid falling oil prices and market shifts
The global fuel giant Shell is analysing the possibility of acquiring BP. According to Bloomberg, Shell is waiting for further declines in stock and oil prices. 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 "persons familiar with the matter," the company is waiting for further declines in oil prices and stocks before deciding to make such an offer.
Will the giants join forces? A merger in the fuel market is in the works
Currently, Shell is significantly larger than BP, with a market value of approximately £147 billion. BP's market capitalisation - according to Bloomberg - is £55 billion. Shell's CEO, Wael Sawan, admitted in an interview with the "Financial Times" that the company still needs to put its internal affairs in order before pursuing major acquisitions.
The acquisition of BP by Shell could significantly strengthen the company's position in the global energy market, enabling it to compete with such giants as 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 Shell representative told Bloomberg that the company is focused on efficiency and discipline. It was noted that an alternative to the merger could be a stock buyout. BP declined to comment on the matter.
