Oil giant Shell said on Thursday that it had “no intention” of making an offer for its UK rival BP and asserted that no such talks between the firms had taken place.
In line with the UK Takeover Code, Shell’s announcement means that it can’t submit another bid for six months, unless certain conditions change.
If another bidder for BP emerges, for instance, Shell could look to acquire the company.
The firm was responding to a Wall Street Journal report that suggested the firms were in discussions regarding a £60 billion (€70.4bn) takeover.
The megamerger would create a global energy group worth more than £200bn (€234.68bn).
BP shares rose in value on the speculation, closing 1.64% higher in daily trading.
CEO Murray Auchincloss, who has headed up BP since early 2024, is focused on boosting the firm’s performance in response to pressure from investors, notably from activist hedge fund Elliott Management.
In efforts to do so, BP said earlier this year it would increase oil and gas spending by about 20%, while cutting renewable investment by around 70%.
This came after BP had pledged in 2020 to reduce oil and gas output by 40% by 2030.
Over the past two years, BP’s valuation has underperformed against competitors Shell and ExxonMobil, firms that are prioritising more oil and gas output.
