Shell Reportedly Eyes $90B Deal For BP, Setting The Stage For Largest Energy Acquisition Since Exxon Mobil

Shell (SHEL) is reportedly in early talks to acquire rival BP (BP), in what could be a landmark deal between two supermajors that would strengthen its position against Exxon Mobil (XOM) and Chevron (CVX).

Shell’s stock edged 0.6% lower during midday trade, while BP’s stock edged 0.8% lower even as crude oil prices were in the green. WTI crude oil futures were up 2% while Brent crude oil futures were up 1.8% on Wednesday.

According to a report by The Wall Street Journal, discussions between Shell and BP are progressing slowly and remain preliminary, with no guarantee of a deal. A Shell spokesperson told Bloomberg,"This is further market speculation. No talks are taking place." Meanwhile, sources told CNBC that Shell is unlikely to buy all of BP, instead different parts of BP would be purchased by mutliple companies.  

BP, currently valued at roughly $80 billion, has not confirmed the talks. A premium on the deal could push the transaction north of $90 billion, potentially eclipsing Exxon’s $83 billion merger with Mobil in 1999. 

The deal would also add to the flurry of consolidation seen in the oil sector. Chevron’s $53 billion purchase of Hess remains tied up in legal challenges from Exxon, while Exxon itself closed a $60 billion acquisition of Pioneer Natural Resources last year. Diamondback Energy (FANG) also sealed a $26 billion deal for Endeavor Energy.

A tie-up would mark a dramatic reversal in fortunes for BP, which has lagged its peers in recent years. The company made an aggressive but costly shift toward renewable energy that led to investor backlash, management turnover, and declining operational performance. 

Earlier this year, BP announced it would cut investments in clean energy and prioritize oil and gas output, while pursuing divestitures in its lubricants and solar businesses.

Shell, by contrast, has doubled down on oil and gas, rolling back green targets and emphasizing shareholder returns. A merger would further consolidate Shell’s position among global majors and mark a strategic bet that fossil fuels will remain profitable for longer than previously anticipated.

Shell’s stock has gained nearly 10% this year, but fallen 3.5% over the last 12 months. Meanwhile, BP’s stock has only gained 4% this year and fallen over 14% in the last 12 months. 

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Editor's Note: This story has been updated with comments by Shell's spokesperson denying the merger.