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BP Faces Takeover as Shell Ban Ends
21 Dec
Summary
- Shell's ban on bidding for BP expires on Boxing Day.
- Meg O'Neill appointed as BP's first external CEO.
- Activist hedge fund Elliott pushes for BP to divest renewables.
Takeover speculation surrounding BP is expected to surge as the restriction on Shell making a bid concludes on December 26. This comes shortly after BP appointed Meg O'Neill, formerly of Woodside, as its first external chief executive in its 116-year history, a move aimed at deterring potential suitors and shifting away from its Net Zero strategy.
Analysts suggest that the leadership changes are unlikely to halt bid discussions, with some noting Shell's history of targeting companies under new management. The activist hedge fund Elliott, which holds a 5% stake, is reportedly advocating for O'Neill to divest underperforming assets, including renewable energy projects, to reduce debt and refocus on fossil fuels.
Further complicating matters, it has emerged that Shell's own leadership had previously blocked a plan to acquire BP this year. With the six-month cooling-off period ending, Shell is free to approach BP. There is also speculation that British ministers might encourage Shell to renew its interest to prevent a foreign takeover of a major energy company.
