Shell has said it has no intention of making an offer to buy BP, quashing speculation that the two UK energy giants were in early talks over a possible takeover.
The Wall Street Journal reported on Wednesday that talks between company representatives were active, with BP carefully considering the approach, citing sources familiar with the matter.
Shell told investors on Thursday that no such discussions had taken place.
The company said: “In response to recent media speculation 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.”
It also confirmed that it had “no intention of making an offer for BP”.
A merger would be among the largest in the oil industry’s history, and would end decades of speculation over a possible deal between two of the UK’s biggest companies.
BP’s shares jumped earlier this month when a report said Shell had been weighing the merits of a takeover with advisers in recent weeks.
Shell’s chief executive told the Financial Times earlier this year that he would rather buy back more of his company’s own shares than launch a takeover bid for BP.
“We will always look at these things, but you are also looking to see what is the alternative,” Wael Sawan said.
“Right now, buying back Shell (shares) for us continues to be absolutely the right alternative to go for.”
Shell’s earnings totalled 23.7 billion US dollars (£17.3 billion) for the 2024 financial year.
It also said it had made three billion dollars (£2.2 billion) worth of cost savings since 2022, hitting a target it had set itself earlier than planned.
