ALBAWABA – Shell, a global group of energy and petrochemical companies, is considering potential acquisition of British Petroleum (BP), the British multinational oil and gas company, according to Bloomberg.
Shell to acquire BP
Shell is considering the potential acquisition of its rival, BP. According to sources, the company has been exploring ways to evaluate a possible takeover. Additionally, Shell is anticipating further declines in oil stocks and prices before moving forward with the bid.
Notably, BP shares have been continuously declining, with the company losing about a third of its value over the past year due to the global drop in oil prices and issues with multiple investors.
BP shares have been continuously declining, with the company losing about a third of its value over the past year. (Shutterstock)
"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 stated.
Shell's share price has declined by approximately 13% on the London Stock Exchange over the past 12 months. Its market capitalization is currently around $197 billion (£149 billion), more than double BP's market cap, which stands at about $74 billion (£56 billion).
According to experts, this acquisition will be one of the biggest mergers between two major companies in the oil sector. Shell and BP have been top competitors for decades, with almost identical size, scope, and global influence.
