Shell has formally denied recent speculation regarding a potential takeover of BP, issuing a statement under Rule 2.8 of the UK City Code on Takeovers and Mergers to clarify its position.
The announcement, released on June 26, 2025, comes in response to media reports suggesting that Shell was considering an offer for its British rival.
Shell categorically stated that it has not been actively considering such an acquisition, has not made any approach to BP, and no talks have taken place between the two companies regarding a possible offer.
The company’s statement carries significant regulatory implications.
By invoking Rule 2.8, Shell is now legally bound by restrictions that prevent it from making an offer for BP for a specified period.
This effectively puts an end to immediate speculation over a potential mega-merger between two of Europe’s largest energy companies, a prospect that had drawn considerable attention from investors and industry analysts.
Shell emphasised that its current strategic focus remains on “delivering more value with less emissions through performance, discipline and simplification,” signalling a commitment to operational improvement and sustainability rather than pursuing large-scale acquisitions.
The company’s leadership reiterated that this direction aligns with its broader goals amid ongoing transformation pressures in the global energy sector.
However, Shell also outlined the standard exceptions under which the restrictions of Rule 2.8 could be set aside.
These include scenarios where BP’s board agrees to an approach, if a third party announces a firm intention to make an offer for BP, if BP announces a Rule 9 waiver or a reverse takeover, or if there is a material change of circumstances as determined by the Takeover Panel.
These caveats are customary in such regulatory statements and leave the door open for future developments under specific conditions.
The formal denial provides clarity for shareholders and the market, dispelling rumours of imminent consolidation between the two oil majors.
Shell’s statement underscores its intent to focus on its existing business strategy while adhering to the regulatory framework governing corporate takeovers in the United Kingdom.
