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Shell said he had “no intention” to make an offer to rival BP after months of speculation about a landmark partnership between the two biggest oil companies in the UK.
In a statement Thursday, Shell said, “We are not actively considering our offer to BP, so we are confirming that we are not taking any approaches and that no consultations have been made with BP.”
A declaration from Shell is that, following a Wall Street Journal report on Wednesday, companies were in early stage negotiations on a contract to create a global energy group worth more than £20 billion.
Shell issued a brief statement Wednesday, refusing to speak on the acquisition, but added that on Thursday it focused on “providing more value” by improving the group’s performance and simplifying the business.
Following Shell’s announcement on Thursday, London’s stock market rules prohibit the group from making BP offers for six months, except in certain circumstances.
Shell reserved the right to place a bid within the next six months if BP receives a bid from another party, and encouraged BP to do so, or stated that “there is a significant change in the situation.”
BP shares rose 0.5% in early trading on Thursday, while Shell shares rose 0.6%.
BP CEO Murray Auchicloss is under intense pressure to revive the fate of his oil major after an aggressive push to renewable energy has set back.
His counterpart at Shell, Wael Sawan, previously expressed little public interest in pursuing the acquisition of rivals.
Shell has spent at least $36 billion on repurchasing stocks over the past three years, during which its stock price has surpassed BP by more than 30%.
