Shell ‘in talks to acquire BP'
Shell is said to be in talks to buy BP in a landmark deal which would unite Britain's two major oil and gas giants.
The FTSE 100 group, led by chief executive Wael Sawan, is in early-stage discussion with BP's leadership in a deal which would create a £210bn giant, the Wall Street Journal said.
A Shell spokesman did not deny the report. They said: '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'.
The talks are said to be at a preliminary stage, but BP is said to be open to the prospect of merging with Shell. BP shares rose 8pc after the report, hitting $32 (£24) per share.
BP is led by chief executive Murray Auchincloss and is valued at £58bn, while Shell is the larger of the two with a market cap of £152bn.
A deal would mark one of the largest takeovers in British history and create a new UK oil champion to compete against larger American groups such as Exxon Mobil and Chevron.
However, such a move would be politically sensitive across the world and require the support of multiple governments, including Sir Kier Starmer's administration, and global regulators.
Oil groups have been struggling to transform their operations in a world of net zero and a crackdown on fossil fuels.
BP has suffered more than most after a decision to move aggressively towards green energy backfired. The strategy was drawn up by former boss Bernard Looney but has since been dropped under Mr Auchincloss, who has moved back to oil and gas.
Elliott, the hedge fund, is a major investor in BP and has been pushing the group to improve its performance.
BP was approached for comment.
This is a developing story
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