Shell’s latest denial about BP mega merger talks leaves door open for a future move

By JESSICA CLARK

Updated: 22:01 BST, 26 June 2025

Shell yesterday left the door open to a future takeover bid for rival BP, even as it insisted it was not ‘actively’ considering an offer at present.

The oil giant doubled down on its denial of takeover talks after a Wall Street Journal report late on Wednesday fuelled City speculation of a mega merger.

The newspaper’s report said Shell was in early-stage talks with BP about a long-rumoured takeover.

A Shell spokesman said: ‘In response to recent media speculation Shell wishes to clarify that it has not been actively considering making an offer for BP and confirms it has not made an approach to, and no talks have taken place with, BP with regards to a possible offer.’

Following the statement, Shell is barred from making a bid for BP for six months under UK takeover rules.

But there are exceptions that would allow a deal to go ahead, including if a rival firm swoops on BP.

Takeover rumours: Shell, led by boss Wael Sawan (pictured), doubled down on its denial of talks over a future takeover bid for rival BP

A deal between the oil giants, which has been the source of speculation for years, would be likely to provoke resistance among BP’s British shareholder base. 

The 124-year-old firm’s share price lags its peers following an ill-fated pivot towards renewable energy.

While the arch-rivals were once neck-and-neck, BP is now worth around £57billion and Shell is valued at £153billion.

Dan Coatsworth, an investment analyst at broker AJ Bell, said: ‘Shell says it hasn’t been actively considering an offer, but that doesn’t mean it won’t do so in the future.’

He said BP is a ‘sitting duck’ and ‘an obvious takeover target’.

He added: ‘If Shell doesn’t move on BP, there’s a good chance someone else will. In either situation, the Government is going to have a lot to think about’. A Shell takeover would keep the energy major under British ownership but would be likely to result in job losses.

But an overseas company buying BP would receive major political backlash and face tough regulatory hurdles.

Last month, it was reported that Shell had called in advisors to work on a potential offer, but was waiting for oil prices and its competitor’s valuation to fall further before making a swoop.

Shell boss Wael Sawan in May refused to rule out a takeover of BP, but said the bar to such a deal was ‘very high’.

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Shell’s latest denial about BP mega merger talks leaves door open for a future move

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