Overview

• Shell has engaged financial advisers to assess the feasibility of acquiring BP but has not yet committed to a bid.
• BP’s share price has fallen by roughly 30% in the past year, making it a potential target for acquisition.
• Shell’s market value is more than double BP’s, driven by its focus on oil and gas and disciplined capital allocation, including share buybacks.
• Any merger between Shell and BP would face intense regulatory scrutiny and political challenges in the UK, EU, and beyond.
• Shell is reportedly waiting for further declines in BP’s stock and oil prices before deciding whether to proceed with a bid.