From Yahoo Finance: 2025-05-04 09:07:00

Shell is considering a takeover of BP after the oil giant’s pivot to net zero strategy failed. BP has abandoned green energy plans and is under pressure to cut jobs. Shell’s stock has rallied while BP’s has slumped. A merger would face intense scrutiny and attract competition regulators’ attention.

Shell is exploring the feasibility of a BP takeover, waiting for share price drops before making a bid. The potential merger could help Shell increase output and compete with US oil giants. BP’s stock price languishes due to failed green energy plans and pressure from shareholders.

A deal between Shell and BP would face intense political and regulatory scrutiny. Shell’s CEO is focused on capturing value through performance and simplification. The threat of a takeover adds pressure on BP’s management, who are under pressure to cut jobs. Shell last reported profits of $5.6bn, down 28% but ahead of analyst expectations.

Read more: Shell explores BP takeover after net zero blunders