BP shares surge on report that rival Shell could acquire it
Shell in Early Talks to Acquire BP, Stock Price Jumps 10%
BP’s stock price saw a significant surge of up to 10% following reports from the Wall Street Journal indicating that Shell is in preliminary discussions to acquire the British oil giant. This news sent shares of BP soaring by $3.11 to $32.94 during early afternoon trading, while U.S.-listed shares of Shell experienced a 3% decline.
The potential acquisition, still in its initial stages, could position Shell to compete with industry giants like ExxonMobil and Chevron. Sources familiar with the matter revealed that if the merger were to materialize, it would represent one of the largest oil deals in recent history.
Both BP and Shell have refrained from providing official comments on the rumored acquisition. A spokesperson from Shell explicitly denied engaging in any talks with BP, dismissing the speculations as market rumors.
Details regarding the structure and terms of the potential deal remain undisclosed, and there is no assurance that it will come to fruition. The discussions are reportedly progressing slowly, as per the Wall Street Journal.
BP holds an approximate market value of $80 billion, while Shell’s market capitalization exceeds $200 billion, based on data from financial analytics firm FactSet.
