Shell checks BP: Significant changes in the energy industry!

Shell checks BP: Significant changes in the energy industry!

Welt, Deutschland - Shell consider a possible takeover of BP. The discussions about this strategic option are currently in the initial phase, and corresponding consultants are involved in the process. However, the decision is initially made dependent on the development of the share price and the oil price. Shell wants to wait for further declines of the two values ​​before a final decision is made. A spokesman for the company also emphasizes that the focus is on increasing value through performance, discipline and simplification.

currently Shell has a market value of around 175 billion euros and has therefore become almost twice as large as BP. Shell could not only establish a takeover as one of the leading actors in the global energy sector, but also lead to regulatory exams on the part of the supervisory authorities. BP itself rejected a statement on the takeover.

market developments and challenges

The considerations for taking BP by Shell must be viewed under the pressure of low oil prices. The oil price for Brent is currently around $ 60 per barrel, which significantly loads the stock corporations of the oil companies. This Situation also influences the ability of the companies to release dividends and to carry out stock returns. For example, BP has reduced its planned share buyback from $ 1 billion to $ 750 million in order to better adapt to the market conditions.

The current market uncertainties, which are also reinforced by trade conflicts and fears before an oversupply, contribute to the volatility of oil prices. Shell could therefore also concentrate on stock returns and smaller acquisitions if the takeover of BP should not be realized. Shell's consultants are currently examining all options, since a fusion with BP would raise them on a level with large competitors such as Chevron and Exxon.

oil prices and influence on the industry

The price development in the energy sector is a decisive factor for the decisions and strategies of the large oil companies. A static report of the Statistical State Office shows the development of producer prices for various types of energy, natural gas and electricity. These price data are not only important for Shell and BP, but have an impact on the entire industry.

Overall, the situation in the energy sector is strongly shaped by the current market conditions. Shell's takeover considerations underline the challenges with which companies are faced with to remain competitive while at the same time the Commodity prices fluctuate. The market reactions to possible mergers or strategic adjustments are still observed because they can have relevant effects on the global energy sector.