COP The shares were whipped on Wednesday while investors reacted to reports that the oil major could be acquired.
COP Shares have jumped more than 10% to a session summit of $ 32.94 on a report in The Wall Street Journal This shell was in the first scene to acquire BP. The report, citing people familiar with the issue, said that an agreement was far from certain.
BP currently has a market capitalization of around $ 80 billion. If Shell acquired the British major in oil, it would be the largest transaction that industry has seen since the 1990s, exceeding the purchase of Exxon from Mobilia for $ 83 billion, said Andrew Dittmar, Fusion and Acquisition Analyst at Entry Intelligence Research.
ShellHowever, discussions refused discussions. BP shares have withdrawn and increased by around 2%.
“This is greater speculation on the market. No conferences take place,” a shell spokesperson told CNBC. “As we have said on several occasions before, we focus heavily on the capture of Shell’s value by continuing to focus on performance, discipline and simplification.”
It is unlikely that Shell would buy the entire BP, said people familiar with the problem, Brian Sullivan from CNBC. It is more likely that BP is divided and sold in pieces to several companies if an agreement is transpired, people said.
BP has underperform Shell and US Rivals because he has had trouble finding a direction in recent years, fueling speculation that the British major oil is a target of acquisition.
BP set ambitious objectives five years ago to reduce carbon dioxide emissions and invest in renewable energies. But his green pivot was examined while the profits flicked. BP announced strategic reset earlier this year, doubling oil and gas while reducing expenses for renewable energies.
BP’s attempt to transform an oil company into a renewable company was “definitely a huge error,” said Paul Sankey, Sankey Research principal analyst on CNBC’s “power lunch”. “These are two very different capital costs and they should never have approached.”
The activist investor Elliott Management revealed in April that it had built a participation of more than 5% in BP, fueling speculation that the company is under pressure to focus on its fossil fuel activity.
