Bloomberg Intelligence Shell Says It Has No Intention of Making an Offer for BP
Jun 26, 2025
Join Will Hares, a Senior Global Energy Analyst, and Jonathan Palmer, a Senior Equity Research Analyst, as they unpack Shell's firm decision not to pursue BP amid swirling acquisition rumors. Will dives deep into the implications of this corporate strategy on the energy landscape, while Jonathan sheds light on Walgreens' strong earnings surpassing Wall Street expectations. They discuss exciting shifts in the pharmacy industry and the evolving dynamics in energy and healthcare sectors, including the growing importance of tech partnerships.
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Shell Refutes BP Acquisition Rumors
- Shell rapidly denied reports about acquiring BP due to strong capital discipline and risk concerns.
- A full takeover would be risky and costly, likely near $100 billion with regulatory challenges.
BP's Valuation Weakness Stands Out
- BP is less valued than Shell and U.S. peers due to inconsistent energy transition strategy and high costs.
- This weak valuation makes BP an interesting acquisition target despite few potential buyers.
Strategic Divide Between US and European Majors
- Exxon and Chevron focus on growing oil and gas, investing heavily in areas like the Permian and Guyana.
- European majors shift rapidly toward renewables, which markets reward less favorably compared to U.S. strategies.