Shell in talks to acquire BP in potential £57bn oil deal
Shell is reported to be in early stage talks to acquire rival BP, which is valued at just over £57 billion. The talks are early stage but active, according to The Wall Street Journal.
The potential tie-up could turn out to be the largest corporate oil deal since the $83 billion megamerger that created Exxon Mobil.
It would also be the biggest M&A deal of the year so far, in a market that has been rattled by President Trump's trade war and other geopolitical tensions.
A Shell spokesman told the Journal: 'As we have said many times before, we are sharply focused on capturing the value in Shell through continuing to focus on performance, discipline and simplification.'
BP's US-traded shares were up 7 per cent after the news emerged while Shell's slid 3.6 per cent.
Acquiring BP would put Shell on better footing to challenge larger US competitors. The activist investor Elliott Investment Management, which owns more than 5 per cent of BP's shares, has pushed for changes at the energy company.
A Shell-BP deal would be the latest in a wave of M&A activity across the energy sector as the producers look to achieve greater economies of scale. America's Chevron is still working to close its $53 billion deal for Hess.
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