Shell is reportedly exploring a blockbuster takeover of its British rival BP, according to a Bloomberg report citing sources close to the matter. While no formal bid has been made, Shell is said to be working with advisors and monitoring BP’s sliding stock performance before making a move.
The timing is notable. BP’s share price has dropped about 13% since the start of 2025 and nearly 33% over the past year. The slump follows a “strategic reset” under new CEO Murray Auchincloss, who is pulling back from low-carbon investments by $5 billion to refocus on profitability. The company has struggled to keep pace with its American peers and is under increasing pressure from investors.
Shell CEO Wael Sawan, when asked about M&A prospects, remained non-committal but noted that buying back Shell’s own shares currently offers “the best value transaction.” Still, the company has not ruled out inorganic growth opportunities.
If a Shell-BP deal materializes, it could rival the scale of ExxonMobil’s $59.5 billion acquisition of Pioneer or Chevron’s $53 billion deal for Hess. It would also mark a defining moment in European energy consolidation, especially amid mounting pressure on oil majors to balance profitability with energy transition goals.
The energy sector is no stranger to mega-mergers—and this one could be the biggest yet. But for now, it remains a waiting game tied to market movements and shareholder sentiment.
