There’s yet another mega-merger brewing in the convenience-store segment.
Shell is eying a purchase of bp, according to a Bloomberg report Sunday, citing sources familiar with the potential transaction.
Shell executives have discussed the purchase with advisors in recent weeks, though discussions are in the early stages and the oil giant is waiting to see if bp stock and oil prices continue to decline, the sources said.
A Shell spokesperson told CSP Monday: “As we have said many times before, we are sharply focused on capturing the value in Shell through continuing to focus on performance, discipline and simplification.”
A bp spokesperson, in an email to CSP, declined to comment on "rumor or market speculation."
If the deal between the two London-based oil companies succeeds, it would be one of the oil industry’s largest takeovers and further evidence of how these two former rivals have seen much different performance in recent years.
- bp is No. 5 on CSP’s 2025 Top 40 Update to the 2024 Top 202 ranking of U.S. c-store chains by store count. Watch for the full 2025 Top 202 ranking in the June issue of CSP magazine and in CSP Daily News.
In February, bp announced a “fundamental reset” of its strategy, abandoning its clean-energy plans with renewed focus on fossil fuel. Late last month, the parent of the ampm and Thorntons c-store chains said it intends to boost its U.S. production of oil and gas by more than 50% by 2030.
Bp’s first-quarter profits dropped nearly 50% from a year ago, to $1.4 billion.
- Shell is No. 38 on CSP’s 2025 Top 40 Update to the 2024 Top 202 ranking of U.S. c-store chains by store count. Watch for the full 2025 Top 202 ranking in the June issue of CSP magazine and in CSP Daily News.
Though Shell’s stock price has declined about 14% over the past year, its market capitalization of $197 billion is more than twice that of bp’s, Bloomberg noted.
Bp is also facing mounting pressure to turn the business around, with activist firm Elliott Investment Management announcing a 5% stake in the company.
Shell on Friday reported adjusted earnings for the first quarter of $5.6 billion, up 52% from the quarter before.
“We will be prudent,” CEO Wael Sawan told analysts Friday, according to a transcript from financial services site AlphaSense. “Of course, we will keep looking at inorganic opportunities. We have $1 billion to $2 billion in our cash CapEx guidance for that. But the bar is high, and we need to be able to see a pathway towards free cash flow per share accretion in a relatively short period.”
Before looking at a major acquisition, “We have to have our own house in order,” Sawan added.
Takeover talks between Circle K owner Alimentation Couche-Tard and 7-Eleven parent Seven & i Holdings Co. are ongoing, with news last week that the two parties had signed a nondisclosure agreement to potentially further the $47.2 billion deal.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.