Shell denies reports of BP takeover talks

The British oil giant reaffirmed its focus on simplifying its business and clarified that no approach or discussions had taken place with BP regarding a potential offer

London: British oil giant Shell on Thursday denied media reports that it is in talks to buy rival BP. The Wall Street Journal on Wednesday said Shell was holding “early stage talks” to acquire BP, citing people familiar with the matter.

“In response to recent media speculation Shell wishes to clarify that it has not been actively considering making an offer for BP and confirms it has not made an approach to, and no talks have taken place with, BP with regards to a possible offer,” Shell said in a statement to the London Stock Exchange.

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Shell has repeatedly denied speculation that it was considering a takeover of its smaller rival BP, saying it was focused on streamlining and simplifying its own business.

Some analysts have suggested BP would be an attractive takeover after a plan to shift its focus to renewable energy, which was abandoned earlier this year, left its shares undervalued in comparison to other oil companies.

BP has also struggled to recover from the 2010 Deepwater Horizon disaster, which killed 17 workers and forced the company to pay billions of dollars for environmental damage in the Gulf of Mexico.