BP Shares Rise Amid Reports of Shell Exploring Possible Takeover

BP Plc saw its stock rise on Monday following a report that rival Shell Plc is evaluating the possibility of acquiring the company, Bloomberg reports.

According to sources cited by Bloomberg, Shell has been working with financial advisers to assess the potential merits and feasibility of a takeover, though no final decision has been made.

BP’s American depositary receipts increased by 1.9% to $28.64 in early New York trading. The London Stock Exchange was closed due to a public holiday, while broader oil and gas stocks in the US declined amid falling crude prices.

Sources familiar with the matter, who requested anonymity, said that Shell may delay any formal move until BP’s stock and oil prices drop further. While Shell is considering its options, the discussions remain preliminary. The company could ultimately decide to prioritize share buybacks or pursue smaller, strategic acquisitions rather than proceed with a large-scale merger.

If a deal were to materialize, it would represent one of the largest mergers in oil industry history, combining two of the UK’s most prominent energy giants. Shell and BP have long been considered peers, but in recent years their strategic paths have diverged.

BP has faced significant headwinds, with its stock falling nearly 30% over the past year. Investor concerns have been fueled by disappointing results from its energy transition strategy under former CEO Bernard Looney, who prioritized net-zero goals. New CEO Murray Auchincloss has since shifted focus back to traditional oil operations, reduced share buybacks, and outlined plans to divest non-core assets.

The company is also under pressure from activist investor Elliott Investment Management, which has disclosed a 5% stake in BP and is urging the firm to explore more significant strategic changes to unlock shareholder value.

Shell, for its part, has emphasized performance, discipline, and operational simplification. In response to the Bloomberg report, a Shell spokesperson reiterated the company’s focus on internal value creation, while a BP representative declined to comment.

Other energy companies are also said to be evaluating whether a bid for BP would be strategically beneficial, though no formal offers have been made public.