BP shares surge on report that rival Shell could acquire it

BP shares jumped as much as 10% after the Wall Street Journal reported that rival Shell is in early talks to acquire the British oil company.

Shares of BP jumped $3.11, or 10%, to $32.94 in early afternoon trading. U.S.-listed shares of Shell, which is also U.K.-based, meanwhile, slid 3%. 

A potential deal, which is said to be in the early discussion stage, would put Shell in a position to rival competitors ExxonMobil and Chevron, according to the report, which cited people familiar with the discussions. If it were to occur, such a merger would mark the largest oil deal in decades.