Shell denies report of BP takeover talks
Shell has denied it is in talks with BP over a possible takeover of its smaller rival.
The Wall Street Journal, citing a number of sources, reported on Wednesday evening that discussions between the two UK-based energy firms were at an early stage but active.
The US publication added that BP was considering the approach.
Money latest:
Its story was published soon after the London Stock Exchange had closed for the day, but US-listed depository shares in BP were 10% up in New York shortly after publication while those for Shell were down.
However, Shell responded to the story by telling Sky News: "This is further market speculation. No talks are taking place."
"As we have said many times before, we are sharply focused on capturing the value of Shell through continuing to focus on performance, discipline and simplification."
The rally for BP shares fell back in the wake of the statement.
BP declined to comment.
The company has been widely seen as a possible takeover target for years as its market value has lagged growth of industry peers.
It was valued at nearly £59bn as of Wednesday while Shell had a market capitalisation of over £153bn.
The gulf between them has widened since 2020 when BP, under-then chief executive Bernard Looney, embarked on a fundamental shift towards a green energy future.
The lofty ambitions were slowly chipped away following record leaps in oil and natural gas costs in the wake of Russia's invasion of Ukraine.
Much of the strategy was overturned in a reset by current boss Murray Auchincloss in February this year, under pressure from shareholders.
BP's debt pile has been seen as a potential barrier to takeover interest.
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