Overview

• Shell officially refuted reports of early-stage merger discussions and confirmed it has not approached BP for a possible offer
• The statement invoked Rule 2.8 of the UK takeover code, legally preventing Shell from initiating a bid for BP for half a year
• BP’s shares briefly rallied on merger speculation but have underperformed peers, losing nearly a third of market value over the past year
• Chief executive Murray Auchincloss’s strategy reset shifted focus back to oil and gas but has yet to win over investors
• With Shell sidelined and few rival buyers able to match BP’s scale, activist fund Elliott Investment Management continues pressing BP for performance gains