BP Takeover Rumours See Shares Jump – Is Shell A Realistic Buyer?

The future of BP (LON: BP) was again in question today, with swirling rumours of asset sales and potential discussions with Shell (SHEL) creating a volatile landscape. BP's NYSE listed shares (NYSE: BP) spiked 9% on the report, only to give back half the gains as the markets digest the reality of a potential takeover.

While a full takeover seems unlikely in the near term, the possibility of BP being broken up and sold off in parts is gaining traction, fueled by investor pressure, strategic restructuring, and interest from energy giants like Shell, Chevron, and ExxonMobil.

BP is targeting $20 billion in divestments by 2027, a move designed to reallocate capital, reduce debt, and appease shareholders demanding higher returns. This strategic shift includes the potential sale of its Castrol lubricants division, an asset that could fetch up to $10 billion.

The elephant in the room is the persistent rumour of Shell’s interest in acquiring BP assets, or even the entire company. Reports surfaced in early May 2025 that Shell had engaged advisers to assess the feasibility of such a takeover, envisioning a European energy behemoth capable of rivalling Exxon Mobil and Chevron.

However, Shell's CEO, Wael Sawan, has tempered expectations, emphasizing a preference for share buybacks and highlighting the high bar for mergers and acquisitions. Sawan explicitly cited BP's higher all-in debt load as a deterrent, pouring cold water on speculation of an imminent takeover.

Beyond Shell, other major players have reportedly kicked the tyres on BP. Chevron, ExxonMobil, TotalEnergies, and Abu Dhabi's Adnoc have all been mentioned as potential suitors, drawn to BP's valuable assets, including its Gulf of Mexico oil and gas holdings and its U.S. shale business.

While a full company takeover appears unlikely due to its debt profile and outstanding liabilities, the possibility of BP being broken up and sold off in parts remains a distinct possibility. The coming months will be crucial in determining BP's future and the potential value that can be unlocked for its shareholders.