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Shell has denied it is in talks to acquire rival BP after months of speculation about a deal that would combine the UK’s two biggest oil companies.
“No talks are taking place,” said a Shell spokesperson, who added that the company has repeatedly said it is focused on its own performance, rather than growing through a major acquisition.
Shell’s chief executive, Wael Sawan, told the FT in May that he preferred to buy back Shell’s own shares than to use the money on a deal for BP.
Sawan has spent much of the past two years improving Shell’s financial health and has been focused on executing his plan to simplify Shell’s sprawling business.
BP’s New York-listed shares initially climbed more than 10 per cent, after the Wall Street Journal reported the two companies were in active talks, before falling back to trade 3.4 per cent higher.
The integration of the two businesses, with very different cultures, would take several years, according to insiders at both companies. There could also be tens of thousands of job losses, a potential political problem for the UK government.
A combination of the two UK oil groups would create a global major worth more than £200bn, that could rank alongside US rivals like Chevron and ExxonMobil.
This is a developing story
