Shell has formally dismissed recent speculation linking it to a possible takeover of rival energy company BP. The company issued a public statement on 26 June 2025 under Rule 2.8 of the UK City Code on Takeovers and Mergers, clearly stating that it has no intention of pursuing such a deal.
The announcement followed media reports claiming Shell was considering an offer for BP. In its response, Shell confirmed it had not been evaluating a bid, had not made any formal approach to BP, and had engaged in no discussions related to an acquisition.
By invoking Rule 2.8, Shell has triggered a legal restriction that prevents it from making any offer for BP for a designated period unless certain circumstances arise. This move effectively silences immediate talk of a potential merger between the two major European oil and gas companies, which had sparked interest among market analysts and investors.
Shell used the opportunity to reinforce its current strategy, which is focused on creating value through operational performance, disciplined management, and emissions reduction. The company indicated that its energy transition efforts and operational streamlining remain at the centre of its priorities.
Shell’s leadership emphasised that its approach aligns with wider goals to adapt to the changing global energy landscape, where sustainability, efficiency, and accountability are increasingly central to business success.
While the Rule 2.8 notice restricts Shell from making a new approach to BP, it also includes standard exceptions. These allow for potential developments if BP’s board supports an approach, if a third party announces a firm bid for BP, if BP seeks a waiver under Rule 9, or if a reverse takeover or material change occurs as assessed by the UK Takeover Panel. These conditions, while routine in such disclosures, leave open the possibility of future engagement under specific circumstances.
Shell’s public statement brings much-needed clarity to shareholders, analysts, and the broader market. It confirms that the company is not seeking a large-scale merger at this time and intends to stick to its existing strategic path.
This latest development reinforces Shell’s commitment to disciplined corporate conduct and its intention to comply fully with UK takeover regulations. By acting swiftly to quash the rumours, Shell has helped avoid unnecessary market disruption and speculation that could affect investor confidence or share prices.
Although some market observers viewed the potential for a Shell-BP merger as a bold move that could reshape the energy sector, Shell’s decision to stay focused on internal performance and long-term sustainability signals a more cautious, strategic approach in today’s volatile energy environment.
With both companies navigating the challenges of the energy transition and facing mounting pressure to cut carbon emissions while maintaining shareholder returns, Shell’s decision suggests it sees more value in optimising its current operations rather than pursuing major acquisitions.
This announcement puts an end, at least temporarily, to any serious discussion of consolidation between Shell and BP. The energy sector may yet see large mergers in the years ahead, but for now, Shell is opting to grow within its current framework.
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