Shell In Talks To Acquire BP In Mega-Merger: Report

by Henry Khederian Benzinga Staff Writer

Zinger Key Points

Shell is in early talks to acquire its rival BP, sending BP shares soaring.
The landmark deal could combine two energy supermajors, but faces significant regulatory hurdles globally.
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Shares of Shell PLC SHEL are trading lower while BP PLC BP shares are surging Wednesday afternoon following a Wall Street Journal report that the two British energy giants are in early-stage talks for a historic merger.

What To Know: The potential deal $80 billion deal, which would be the largest in the oil and gas sector in a generation, could create a European behemoth to rival American giants ExxonMobil and Chevron.

Preliminary discussions come as both companies navigate the global transition to renewable energy. A combined entity would command a significant share of the world’s oil and gas production and LNG capacity. A merger could unlock substantial synergies, streamlining operations and reducing costs.

Read Also: SHEL Analyst Ratings

What Else: However, the path to a deal is likely fraught with challenges. Antitrust regulators in the United Kingdom, United States and European Union would undoubtedly scrutinize the consolidation of two of the world’s largest energy suppliers.

The potential implications are vast, promising to reshape the competitive landscape of the global energy market. For shareholders, the deal could unlock value but also introduces significant execution risk.

Price Action: According to data from Benzinga Pro, BP shares are trading higher by 7% to $31.92 Wednesday afternoon. SHEL shares are meanwhile lower by 3.76% to $67.50.

Read Also: BP Analyst Ratings

How To Buy SHEL Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Shell’s case, it is in the Energy sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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