Shell Reportedly to Acquire BP, Negotiations to Begin Soon

KatadataOTO – Shell is reportedly set to buy BP, the London, England-based oil company. However, they are said to be waiting for a drop in stock and oil prices before finally making an offer.

According to Reuters, the oil company with the seashell logo has been considering various factors, from feasibility to the benefits of the takeover, in recent weeks. A final decision will only be made depending on whether BP's stock value continues to decline.

Looking back, the two companies were almost the same size. However, the situation began to change as Shell successfully continued to grow to twice the size of BP, with a market value of around 149 billion pounds or more than IDR 3 quadrillion.

Meanwhile, BP's stock has experienced a sharp decline in the last 12 months because the company's recovery plan was deemed unsuccessful by investors. The drop in oil prices is also reported to have worsened the situation.

Photo : BP-AKR

If Shell does succeed in acquiring BP, they will become one of the largest companies in the global energy industry. This transaction would likely even need to be monitored to ensure there are no regulatory violations.

Shell itself claimed to have exceeded its profit target in the first quarter of 2025, ensuring the company is in optimal condition.

The oil company from the United States even managed to buy back foreign-owned shares worth USD 3.5 million (IDR 57.3 billion).

Meanwhile, Murray Auchincloss, the current CEO of BP, is under pressure to increase profits. They have even announced plans to sell assets worth USD 20 billion or IDR 328 trillion by 2027.

The company will also reduce spending and buy back shares they have released. BP is also taking various other measures to attract investor confidence.

Photo : KatadataOTO

In Indonesia, Shell and BP operate as companies that sell non-subsidized fuel. Both are present in several major cities and serve as an alternative choice for customers when the fuel supply at state-owned enterprises runs out.

Their prices are also considered competitive, giving people more opportunities to choose what is most suitable for their vehicles.