Rumours have been circulating that energy giant Shell is in early talks to buy rival BP in a deal worth nearly £65 billion.
BP’s US-listed shares rose 10% following a story in the Wall Street Journal that discussions between the two UK-based energy firms were at an early stage.
It was published after the London Stock Exchange had closed for the day.
Shell denies claims
However, Shell has strongly denied these claims, confirming that no such discussions are underway.
Both companies play a vital role in Aberdeen’s energy sector, spanning oil, gas, and offshore wind.
A Shell spokesperson said: “This is further market speculation. No talks are taking place.
“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.”
© Supplied by DCT / ShutterstockA later statement added that Shell “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.
“We remain focused on delivering more value with less emissions through performance, discipline and simplification.”
BP’s market value currently stands at nearly $80bn (around £65bn) with Shell’s sitting at £151bn.
In its reporting, the Wall Street Journal said a successful takeover would position Shell more strongly against global competitors such as ExxonMobil and Chevron.
It would also mark a historic combination of two of the world’s energy supermajors – multinational giants that dominate oil and gas production.
The reports said if the deal progresses, it could reshape the global energy landscape.
Shell’s Granite City HQ
In May, Bloomberg also reported Shell was considering making a bid for BP.
Shell has spent at least £26bn ($36bn) on buying back its shares over the past three years, during which time its share price has outperformed BP by over 30 per cent,
Shell first opened an office in Aberdeen in 1965, above the Church of Scotland bookshop on Union Street.
© Supplied by Darrell Benns/DC ThoIn 1973 it then moved to its new headquarters in Tullos Industrial Estate, off Wellington Road, before it was demolished in August last year.
Shell returned to the city centre, before the demolition, moving into the Silver Fin building on Union Street at the start of 2023.
BP have been approached for comment.
