Shell Denies Reports of Bid for BP

Energy supermajor Shell has adamantly stated that it has made no bid for rival BP, and that such a move is not being considered.

Different media outlets reported that Shell was in talks to acquire BP in a deal worth £60bn ($82.3bn). However, this is not new as similar stories have been doing the rounds on and off for some time.

In early May, reports emerged that Shell and its advisers were considering a potential takeover of BP, possibly setting up one of the largest deals in the history of the oil and gas industry. There was no mention of any storm brewing until Wednesday, when new reports of a possible deal emerged, claiming it would create a British oil company worth well over £200bn ($275bn).

Shell wanted to make it clear that no move to acquire BP has been made and stated that it was bound by UK regulations from making a bid.

“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 regard to a possible offer,” the company said in a statement.

The supermajor added that it has “no intention of making an offer for BP” and will “remain focused on delivering more value with less emissions through performance, discipline, and simplification”.

Shell has a six-month ban on making an offer for over 30% of BP’s shares. This can be shortened only if another bidder makes an offer for such a stake in BP.