Shell denies reports it is in talks to take over BP

Shell rebuffed a Wall Street Journal report that said the oil giant was in early talks to take over its rival company BP.

Shell rebuffed a Wall Street Journal report that said the oil giant was in early talks to take over its rival company BP. “This is further market speculation. No talks are taking place,” the company said in a statement Wednesday. It would be the largest oil deal in modern times as BP is valued around $80 billion, the WSJ reported. It would’ve been the mega-deal of the year between two rival oil corporations, as geopolitical tensions threaten to jeopardize the broader oil and gas market. “As we have said many times before we are sharply focused on capturing the value in Shell through continuing to focus on performance, discipline and simplification,” the company said in its first statement to CNN. BP declined to comment. BP stock had risen as much as 10.5% Wednesday, though the rise has tapered. Bloomberg first reported on the speculation of a takeover in May. BP has been struggling, underperforming Shell by 17% over the past year and 84% over the past 5 years, according to a Capitol Markets research report. But Shell stands to benefit from BP’s liquified natural gas portfolio, and the Capitol Markets report said Shell still needs to work on its energy transition strategy as well as the longevity of its crude oil and natural gas portfolio.