Petroleum MegaFusion: The agency said shell Studies had purchased BP
A. Shell It predicts a possible acquisition offer by opponent BP, which has reduced the value of 33% in its actions in the last 12 months. This information was published on Saturday, 4, the agency BloombergThe roots were heard with direct knowledge about the negotiations. This movement keeps two largest oil companies in the UK that turns out to be one of the largest Mergers and acquisitions (M & A) History of the fuel sector.
According to the sources of BloombergA. Shell It discusses the possibilities of the offer with advisers, but the oil prices or the newly decreased in BP shares, waiting for a more timely moment. There is also the possibility of a BP or another interested party’s movement, strategically placed for controversy.
The action of BP Investors have been fined after several strategic decisions, including the turn of zero liquid emissions executed by former CEO Bernard Luni. Its successor Murray has already redefined the company’s strategy, reducing oil focus, reducing stock rebuilding and selling assets. However, The BP lost market value and $ 56 billion ($ 74 billion) compared to the shell today.
Eventually the acquisition exceeds the BG Group purchase by the Shell in 2016, whose price is 50 billion. Current CEO ShellWhale Sawan told investors that new businesses are “high”, the company is still looking for inorganic opportunities – if they increase the flow of free cash for action in a reasonable period.
The stress of stakeholders and the effect of OPEC+
Possible acquisition takes place between stress from activist treasure Elliot Investment ManagementIt reveals 5% participation in the BP and charges more “transformed” actions. The manager thinks that the current BP strategy is slow and makes it acquired.
In addition, the fall of Brent Oil is less than $ 70, after a new decision Opec+ To increase the production in June, it further pressured the financial expectations of BP. Shell has reduced the cost of fossil fuels and strengthens portfolio and leaves less profitable in reproductive forces.
For investors, the merger between BP and shell extends to the company’s presence in global production with market recovery USA After the sale of assets in the Permian Basin in 2021.
