Shell potentially eyeing takeover of BP, claim sources
A juicy rumor's been rippling through the oil world: Bloomberg's spilling the tea that Big Shell might be eyeing up its arch-nemesis BP.Insider chatter's afoot that Shell's been huddling with advisors, sizing up the feasibility of snagging BP in a megadeal that could potentially shake up the entire industry.
Shell's kinda just kickin' tires right now, holdin' off on pullin' the trigger till BP's stock plummets further and oil prices drop even lower, hopin' to snatch 'em up on the cheap. The London-based oil giant's droppin' big-time, with a share price drop of around 27% over the past year and a staggering valuation gap compared to BP.
BP, on the other hand, ain't exactly haven't had it easy either. Their market position's been shaky since former CEO Bernard Looney started focuseshiftin' toward decarbonization and renewables. That move didn't fare well with investors, who've been disapointin' since oil prices dropped below $70 per barrel. New CEO Murray Auchincloss has been tryin' to steer the ship back on course, sellin' assets and buyin' back shares, but the market just ain't bitten yet.
Activist investor Elliott, who's got a 5% stake in BP, ain't exactly helpin'. They've been callin' for drastic changes, warnings that BP could end up as someone's trophy.
Shell's CEO, Wael Sawan, hasn't exactly been shy about their interest. He's admitted that they're takin' a close look at both organic and inorganic growth opportunities, but warns that they've gotta get their own house in order first before makin' a move.
There's still no solid deal on the table, though. Shell's kinda just kickin' tires right now, seein' how things evolve with BP's stock and oil prices. They might opt for a less risky move, like a share buyback, instead.
All in all, it's a wait-and-see game for now. Shell's sizing up the competition, and only time will tell if BP'll end up on their roster or ain't worth the trouble. Keep an eye on this one, folks!
Of Shell's potential acquisition of BP, finance plays a crucial role in Shell's strategy to wait for BP's stock prices to plummet further and oil prices to drop lower, aiming to acquire BP at a lower cost. The energy industry could witness significant changes if such a megadeal takes place, as BP's current focus on decarbonization and renewables may be altered under new leadership.
