Shell is in early talks to acquire BP per the WSJ.
The deal could be worth around $80 billion and would potentially mark as the largest oil acquisition of this generation.
According to reports, the talks between the representatives are still in the early stages and a representative said discussions are moving slowly.
Currently BP is valued at around $80 Billion – the stock is up already +7% at the time of writing.
BP share price has outperformed rivals like Exxon and Chevron in recent months, but over the past year and five years, it has significantly underperformed both in total returns.
Elliot Investment Management, who owns 5% of BP’s shares, and could potentially be a significant mover in getting this deal done.
Shell’s potential acquisition of BP would allow it to scale operations, reduce costs, and sideline competitors. It could also appeal more to U.K. regulators than a foreign buyer, given BP’s historic British roots. Bloomberg previously reported Shell’s interest in a deal.
If completed, it would mark another major move in a broader wave of energy sector consolidation. Chevron is still trying to finalize its $53B acquisition of Hess, currently challenged by Exxon.
Meanwhile, Exxon recently closed a $60B deal for Pioneer, and Diamondback bought Endeavor for $26B to expand in the Permian Basin.
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