Overview

• Shell issued a statement under the UK Takeover Code confirming it has not approached BP and will not bid for six months
• BP’s shares initially jumped on takeover rumors before paring gains after Shell’s denial, highlighting market sensitivity to merger speculation
• BP’s recent strategic reset to refocus on oil and gas followed a poorly received shift to renewables, leaving the company underperforming against peers
• CEO Wael Sawan has set a high bar for large acquisitions, favoring share buybacks as Shell’s primary tool for delivering shareholder value
• Any merger would face extensive regulatory scrutiny and complex integration challenges, reinforcing Shell’s cautious posture