Shell Squashes BP Takeover Rumors, Hits Six-Month Ban

Shell plc (NYSE:SHEL) has issued a statement addressing recent media speculation about a potential deal to acquire BP plc (NYSE:BP).

“Shell wishes to clarify that it has not been actively considering making an offer for BP and confirms it has not made an approach to, and no talks have taken place with, BP with regards to a possible offer,” the company said in a statement on Thursday.

This is a statement to which Rule 2.8 of the Code applies. Rule 2.8 states that if a company makes a public statement that it does not intend to make an offer for another company, it is then bound by certain restrictions.

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As a direct consequence of this Rule 2.8 statement, Shell is now formally restricted from making an offer for BP for a period of six months.

Under the U.K.’s Takeover Code, the six-month ban on making an offer for over 30% of BP’s shares can be shortened if another bidder for BP emerges or if BP invites an offer, according to the regulations.

The statement from Shell comes after a Wall Street Journal article on Wednesday reported that the Dutch oil giant had held early-stage talks to acquire its rival, BP. The article cited sources familiar with the matter, indicating active discussions between company representatives.

A Bloomberg report in May preceded this, suggesting that Shell was indeed evaluating a potential acquisition of BP but was waiting for further declines in stock and oil prices before making a final decision.

Furthermore, in February, activist investor Elliott Management reportedly acquired a stake in BP and had been advocating for substantial changes at the British oil company to boost its performance.

In terms of recent financial performance, Shell reported its first-quarter 2025 revenue of $69.234 billion, which missed the consensus estimate of $79.13 billion. Production figures showed that Total production at Integrated Gas fell 2% quarter-over-quarter (Q/Q) to 927 kboe/d (thousand barrels of oil equivalent per day), while Upstream production remained flat Q/Q at 1,855 kboe/d.

Price Action: SHEL stock is up 2.49% at $71.17, and BP stock is down 0.07% at $30.30 during the premarket session at last check Thursday.

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