LONDON -- BP and Royal Dutch/Shell are thought to have revived plans for a merger to create an oil giantin fact, the world's biggest, surpassing ExxonMobilwith a market value of 250 billion ($503.17 billion U.S.), according to a report by The Times of London.
The newspaper said that Britain's two largest oil companies have engaged financial advisors to discuss terms for a so-called friendly merger that could result in 2.5 billion ($5.03 billion U.S.) of cost savings for the enlarged group.
BP while under Lord John Brownethe former [image-nocss] CEO, who said in early May amid financial and personal scandals that he would be stepping down this monthis said to have approached Shell last year about a deal. Those plans are thought to have been reheated under the leadership of Tony Hayward, BP's new CEO, the report said.
Another report, by The Daily Mail, speculates that such a merger would win approval by government regulators, but that both companies would have to dispose of some assets.
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