Is Oil Giant Shell Planning To Buy BP In A Rs 6.8 Lakh Crore Deal? Here's What We Know

Shell has strongly denied media reports that it is in early-stage talks to acquire its British rival, BP, in a massive $80 billion (Rs 6.8 lakh crore approx.) deal, according to Reuters.

A report by the Wall Street Journal had suggested that Shell was exploring a potential takeover, which, if completed, would be one of the largest oil industry mergers in recent decades. However, Shell has refuted the claims.

“No talks are taking place,” a Shell spokesperson said. “As we have said many times before, we are sharply focused on capturing the value in Shell through continuing to focus on performance, discipline, and simplification.”

BP declined to comment on the report.

The speculation comes amid ongoing discussions in the energy industry about consolidation. BP has long been considered a potential target due to its underperforming stock price, despite the company being valued at nearly $80 billion with $27 billion in net debt. In comparison, Shell’s market value stands at over $208 billion.

Shell’s CEO, Wael Sawan, has consistently opposed large acquisitions. He has emphasised that Shell prefers to return value to shareholders through buybacks rather than pursue big-ticket deals. “We have a very high bar for big acquisitions,” Sawan stated.

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Share Price Of Shell Falls

BP’s American depositary shares rose 1.5% to $30.40 after the news, while Shell’s shares slipped 0.7% to $69.70.

If Shell were to move forward with a bid, it would be a rare example of a major oil company attempting to acquire such a large competitor, especially at a time when regulators are closely watching large mergers. The last serious effort of this scale was during the COVID-19 pandemic, when ExxonMobil and Chevron explored a potential tie-up that ultimately did not happen.

Reports also suggest that if a deal were to go ahead, BP might even be broken up, according to CNBC sources.

In the past year, BP’s shares have fallen about 23%, lagging behind the FTSE 100 index, which has gained 5.3%. In contrast, Shell shares have risen more than 8%, while Exxon and Chevron have seen declines of 4% and 10% respectively.

BP Partnership In India With Jio

In India, BP operates through a joint venture with Reliance Industries Limited under the brand name ‘Jio-bp’. This partnership combines BP’s global expertise in fuels and mobility solutions with Reliance’s strong local presence and digital reach.

Jio-bp offers conventional fuels as well as alternative energy options like electric vehicle (EV) charging and compressed biogas (CBG).

It also provides doorstep diesel delivery through ‘Jio-bp Fuel4U’ and supplies aviation turbine fuel via its aviation brand ‘air bp-Jio’.

Additionally, BP’s Wildbean Café operates in India in collaboration with Jio-bp, offering café services at and beyond fuel stations.