Overview

• Shell and BP are engaged in preliminary merger discussions that remain slow-moving and unconfirmed.
• BP shares climbed by as much as eight percent on the news while Shell’s stock dipped.
• If completed, the transaction would create a £200bn energy giant, rank among the largest acquisitions in UK history and be politically sensitive in the City of London.
• The potential deal comes as BP has shifted strategy to ramp up oil and gas output while slashing renewable energy investments.
• The merger would elevate Shell above Exxon Mobil and Chevron and reshape the competitive landscape among major oil producers.