Shell denied rumors of interest in buying BP. How did the stock react?

British-Dutch oil and gas giant Shell has said it has not approached rival BP with a purchase offer and has no plans to do so. This was Shell's response to rumors about allegedly ongoing negotiations that could lead to the largest merger in the industry in recent decades.

«In response to recent media speculation, Shell wishes to clarify that it has not actively considered making an offer to acquire BP and confirms that it has not approached or negotiated with BP regarding a possible offer,» said in a Shell statement released on June 26. 

Following the announcement, Shell's options have been restricted by the UK Takeover Code: it cannot make an offer for six months - unless BP's board agrees, another bidder emerges or there is a material change in circumstances,

Shares of Shell grew at the opening of trading in London by 0.4%. BP shares added 0.2% in price.

The WSJ reported on June 25, citing sources, that investment bankers on behalf of Shell and BP are discussing a possible deal, but the talks are in the early stages, progressing slowly and do not yet mean the merger will happen. The idea of Shell buying BP is not new - it has been discussed in the media and by analysts for months. По мнению MarketWatch, новостью для рынка в сообщении WSJ стало то, что нефтегазовые гиганты ведут прямые переговоры, пусть и на ранней стадии.

Shell securities in New York then initially collapsed by 4%, to their lowest since early June, but then recovered most of their losses to close down 1%. BP's American Depositary Receipts (ADRs) soared 9.5% to their highest since early April 2025, but then corrected to end the trading session up only 1.6%.

BP shares have come under pressure in recent years, with the company criticized for its failed pivot to green energy, personnel changes and operational problems. Activist fund Elliott Investment Management, which owns more than 5% of BP, is demanding changes in strategy. In February, BP announced a reversal of course: it is now back betting on oil and gas and cutting back on investments in clean energy. For Shell, buying BP could strengthen the company's position against U.S. rivals Exxon and Chevron, accounts the WSJ.

A merger between Shell and BP, one of the largest multinational players in the oil and gas sector, would be the biggest deal since the $83 billion merger of Exxon and Mobil in the late 1990s. BP is now valued at £58 billion ($79.3 billion), while Shell's capitalization is £151.7 billion ($208.7 billion).

This article was AI-translated and verified by a human editor