Shell (SHEL, Financials) is in early-stage discussions to acquire rival energy firm BP (BP, Financials), according to a Wall Street Journal report citing people familiar with the matter. Talks are ongoing, and BP is said to be evaluating the approach. As of 1604 GMT, BP's U.S.-listed shares were up approximately 6.5%, while Shell's were down 3.3%.
BP, with a market capitalization of around $80 billion, would represent a major acquisition for Shell, which is currently valued at over $208 billion. Potential deal terms have not been disclosed, and a transaction remains far from certain.
A Shell spokesperson said the company remains focused on “performance, discipline and simplification,” while BP declined to comment. Shell CEO Wael Sawan has recently stated the company maintains a “very high bar” for large acquisitions, favoring share buybacks as a better use of capital.
