BP and Royal Dutch Shell are said to be in merger talks that would create a £250 billion oil giant, according to the Times of London.
"The City is awash with talk 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 of cost savings for the enlarged group," it wrote.
It says BP, under previous CEO Lord Browne, was thought to have approached Shell last year, and that those plans have now been rekindled under current CEO Tony Hayward. According to website This is Money, company advisors and executives are involved in 'round the clock' negotiations. It says the combined entity would produce over 70% more oil and gas than industry leader ExxonMobil. BP shares are up 2% over the past three days, while Royal Dutch Shell shares have gained 4.5% over the same stretch.
"The City is awash with talk 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 of cost savings for the enlarged group," it wrote.
BP while under Lord Browne, former chief executive, is 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 chief executive. Royal Dutch’s A-shares rose 33p to £20.67p, while its B-shares gained 26p to 21.09. (James Rossiter)
It says BP, under previous CEO Lord Browne, was thought to have approached Shell last year, and that those plans have now been rekindled under current CEO Tony Hayward. According to website This is Money, company advisors and executives are involved in 'round the clock' negotiations. It says the combined entity would produce over 70% more oil and gas than industry leader ExxonMobil. BP shares are up 2% over the past three days, while Royal Dutch Shell shares have gained 4.5% over the same stretch.
