Shell Addresses BP Merger Speculation

Jun 26, 2025

Shell said on Thursday it hasn’t actively considered an offer for BP and has no intention of making such a bid, after a media report earlier this week rekindled speculation about a giant energy tie-up of the two UK-based rivals. 

On Wednesday, BP shares jumped by nearly 7% before paring the bulk of those gains after The Wall Street Journal reported that Shell is in early-stage discussions to acquire its British rival.    

The company on Wednesday dismissed the Journal’s report as “market speculation.”

Shell then put out a statement on Thursday, in which it 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.” 

Under UK market rules, Shell confirmed it has no intention of making an offer for BP and by confirming this, Shell will be bound by the restrictions in the rules not to make an offer for BP in the next six months. 

“We remain focused on delivering more value with less emissions through performance, discipline and simplification,” Shell said. 

The supermajor, however, left the door slightly open to an offer in the future if a third party announces a firm intention to make an offer for BP, or “if there has been a material change of circumstances.” 

BP’s weak first-quarter results and stock underperformance over the past year have rekindled speculation that the UK-based supermajor could be a target of a blockbuster acquisition. 

Speculation about another oil giant taking over BP is not new—such rumors have been swirling for over a decade, particularly ones suggesting that Shell could be the bidder for a merger with BP.

Shell’s CEO Wael Sawan told analysts on the Q1 earnings call last month that “before we ever look at a sizable inorganic, we have to have our own house in order.” 

“I’ve said in the past we want to be value hunters. Today value hunting, in my view, is buying back more Shell,” Sawan said. 

Still, market analysts and investment banks have started to run the numbers on how big a Shell-BP oil and gas giant could be. 

Oilprice.com