Shell and BP have been fighting for decades for dominance in the oil company of billion dollars, which Shell has clearly won in recent years. Now Shell finally wants to win the competition with the takeover of the rival and to rise to a competition with the US Energy Giants Exxon and Chevron. But BP has to lose value one last time …
BP has been taken over by the competitor Shell in the Chamber for decades and according to reports in the media, the deal of billion dollars is now becoming concrete. In recent weeks, the group has apparently spoken with advisers about the feasibility and benefits.
Before the purchase, Shell will probably only wait for how deeply the share price of the rival falls. The BP paper recently lost a third of its value within a year. A new strategy was not well received by investors. The falling oil price also plays a role in the takeover – BP had calculated its financial goals with an oil price of $ 70, and the value is currently around $ 61.
BP in the crisis, Shell in court
In Austria, BP had recently reached the headlines with wanting to sell his gas station network this year. By the end of the third quarter you are now looking for a buyer for the more than 260 locations of the gas station. Other branches must also be completely divested.
Both companies do not necessarily look back on successful years: the Shell share also fell by around 13 percent in the previous year. The company is currently worth nearly $ 200 billion (176.6 billion euros) with the yellow logo, BP around $ 75.5 billion ($ 66.8 billion). Shell has been fighting the complaints of climate activists for years.
Until a few years ago the companies were comparable, if one group flared through the other completely, this would be one of the greatest acquisitions in the industry worldwide. However, storage returns or extra acquisitions are available in the room instead of a full takeover.
Shell remained vague on request: “As we have emphasized several times, we strongly focus on increasing the value of scale by continuing to concentrate on performance, discipline and simplification.” Until now there has been no statement from BP.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
