### Shell Denies Acquisition Talks with BP Amid Market Speculation Recent reports have circulated regarding a potential acquisition of BP by Shell, suggesting that discussions were underway for a deal that could be valued at around £60 billion. However, Shell has firmly denied these claims, stating that it is not in talks to acquire its rival. The speculation appears to have been fueled by a Wall Street Journal article, which Shell has dismissed as mere market speculation. The company emphasized its commitment to enhancing shareholder value through its operational performance rather than pursuing acquisitions at this time [https://www.businesstimes.com.sg/companies-markets/energy-commodities/shell-says-it-isnt-talks-take-over-oil-rival-bp][https://www.theguardian.com/business/2025/jun/25/shell-bp-merger-talks]. ### Breakdown of the Situation 1. **Denial of Acquisition Talks**: Shell has publicly refuted claims of being in discussions to acquire BP, labeling the reports as speculative [https://news.sky.com/story/bp-shares-soar-on-report-of-shell-takeover-talks-13388562]. 2. **Market Reaction**: Following the initial reports, BP's shares experienced a notable increase, rising by 8% as investors reacted to the speculation of a potential takeover [https://www.nbcsandiego.com/news/business/money-report/bp-shares-jump-8-on-report-it-is-in-early-stage-talks-to-be-acquired-by-shell/3855883]. 3. **Focus on Operational Performance**: Shell reiterated its strategy to focus on improving its own operational performance to deliver shareholder value, rather than pursuing mergers or acquisitions [https://www.cityam.com/shell-looks-to-acquire-bp]. 4. **Speculation Context**: The idea of a merger between Shell and BP has been a topic of speculation for some time, but Shell's recent statements clarify its current position against such a move [https://www.devdiscourse.com/article/headlines/3481940-shell-denies-talks-of-bp-buyout-amid-speculations]. ### Supporting Evidence and Market Data - **Share Price Movement**: BP shares rose by **8%** following the speculation of a takeover, indicating investor interest in the potential deal [https://www.nbcsandiego.com/news/business/money-report/bp-shares-jump-8-on-report-it-is-in-early-stage-talks-to-be-acquired-by-shell/3855883]. - **Market Valuation**: The proposed acquisition was speculated to be valued at **£60 billion**, which would have made it one of the largest corporate deals of the year [https://www.moneycontrol.com/world/oil-giant-shell-in-talks-to-acquire-bp-in-what-could-be-biggest-corporate-deal-this-year-report-article-13178901.html]. - **Shell's Strategic Focus**: Shell's commitment to enhancing shareholder value through operational performance rather than acquisitions is a key part of its current strategy [https://www.cityam.com/shell-looks-to-acquire-bp]. ### Conclusion and Key Takeaways 1. **Shell's Firm Denial**: Shell has categorically denied any ongoing discussions regarding the acquisition of BP, emphasizing that the reports are speculative. 2. **Market Response**: BP's stock price reacted positively to the rumors, reflecting investor optimism about a potential merger. 3. **Strategic Direction**: Shell is focused on improving its operational performance to create shareholder value, distancing itself from acquisition pursuits at this time. In summary, while the market buzz surrounding a potential Shell-BP merger has generated significant interest, Shell's clear stance against such discussions highlights its current strategic priorities [https://www.businesstimes.com.sg/companies-markets/energy-commodities/shell-says-it-isnt-talks-take-over-oil-rival-bp][https://www.theguardian.com/business/2025/jun/25/shell-bp-merger-talks].