Shell Plc said it has no intention of making a bid to buy BP Plc, refuting reports on Wednesday that it was in active talks to acquire its British rival, UNN reports, citing Bloomberg.
Details
"In response to recent media speculation, Shell would like to clarify that it has not been actively considering making an offer to buy BP," the company said in a statement on Thursday.
Shell "has not approached BP and has not held any negotiations with it regarding a possible offer," according to a statement on Thursday. "It has no intention of making an offer," the statement said.
This announcement means that Shell is obliged to comply with the UK Takeover Code, which largely prohibits it from making an offer for six months, the publication writes. This period, it said, may end early in a limited number of exceptions, including if BP receives an offer from another bidder or proposes a new approach, or there is a "significant change" in circumstances.
There is growing speculation that BP, which is under strong pressure after years of poor performance and interference from a large activist shareholder, will become a takeover target. Its shares jumped in US trading after The Wall Street Journal reported that it was in talks with its larger rival.
But Shell quickly dismissed the report as "market speculation."
Addition
BP is struggling with a prolonged low level of profits, largely due to the net zero strategy chosen by former Chief Executive Officer Bernard Looney. His successor, Murray Auchincloss, announced a "reset" in February that included a return to oil, a reduction in share buybacks and promises to sell assets.