By DANIEL JONES, CONSUMER EDITOR FOR DAILYMAIL.COM

Published: 17:36 BST, 25 June 2025 | Updated: 17:36 BST, 25 June 2025

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Shell is in early-stage discussions to acquire rival oil giant BP in a move that would result in the largest oil industry deal in a generation. People familiar with the matter told T he Wall Street Journal that Shell and BP are in active discussions, though a deal remains uncertain and could still fall apart. Shares of BP jumped 8 per cent on the news.

Shell is in early-stage discussions to acquire rival oil giant BP in a move that would result in the largest oil industry deal in a generation. People familiar with the matter told T he Wall Street Journal that Shell and BP are in active discussions, though a deal remains uncertain and could still fall apart. Shares of BP jumped 8 per cent on the news.

If successful, the acquisition would mark a seismic shift in the global energy landscape — combining two of the world's so-called 'supermajors' and giving Shell a stronger position to compete with industry heavyweights like ExxonMobil and Chevron. BP is valued at around $80 billion, though Shell would likely pay a premium on that.

If successful, the acquisition would mark a seismic shift in the global energy landscape — combining two of the world’s so-called ‘supermajors’ and giving Shell a stronger position to compete with industry heavyweights like ExxonMobil and Chevron. BP is valued at around $80 billion, though Shell would likely pay a premium on that.

That would put the total value near the $83 billion merger that created ExxonMobil in 1999. It would be the biggest oil-sector transaction in more than two decades—and the largest corporate deal of the year so far. Details of the potential offer remain unclear, and the deal is far from certain, sources told the Journal.

That would put the total value near the $83 billion merger that created ExxonMobil in 1999. It would be the biggest oil-sector transaction in more than two decades—and the largest corporate deal of the year so far. Details of the potential offer remain unclear, and the deal is far from certain, sources told the Journal.

A Shell spokesperson declined to address the potential acquisition directly when speak to the Journal. 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.'

A Shell spokesperson declined to address the potential acquisition directly when speak to the Journal. 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.’

BP declined to comment to the Journal. If completed, the merger would not only reshape the global oil and gas sector but could also have ripple effects for consumers, energy markets, and climate policy. The deal comes at a time when geopolitical tensions, including President Trump's ongoing trade war, continue to inject uncertainty into global markets.

BP declined to comment to the Journal. If completed, the merger would not only reshape the global oil and gas sector but could also have ripple effects for consumers, energy markets, and climate policy. The deal comes at a time when geopolitical tensions, including President Trump’s ongoing trade war, continue to inject uncertainty into global markets.

Oil prices spiked after tensions in the Middle East between Israel and Iran. But they tumbled as tensions eased. US crude dropped 5.4 percent to $64.82 a barrel. Prices have now fallen below where they were before fighting began nearly two weeks ago.

Oil prices spiked after tensions in the Middle East between Israel and Iran. But they tumbled as tensions eased. US crude dropped 5.4 percent to $64.82 a barrel. Prices have now fallen below where they were before fighting began nearly two weeks ago.

Concerns had centered on the possibility that Iran — one of the world's top oil producers — might block the vital Strait of Hormuz, which handles 20 percent of the world's daily oil shipments. But Iran's recent retaliatory strike was limited and did not target oil production or transport. If the ceasefire holds, oil prices could fall further amid strong global supply and increased output from OPEC+, said Commerzbank analyst Carsten Fritsch.

Concerns had centered on the possibility that Iran — one of the world’s top oil producers — might block the vital Strait of Hormuz, which handles 20 percent of the world’s daily oil shipments. But Iran’s recent retaliatory strike was limited and did not target oil production or transport. If the ceasefire holds, oil prices could fall further amid strong global supply and increased output from OPEC+, said Commerzbank analyst Carsten Fritsch.

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Report: Shell in early talks to buy rival BP

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