British oil major BP logo.
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For weeks, the market tongue is thinking of a possible merger among Britain oil veterans – until the weeks ended speculation, Shell on Thursday refused reports that it was in conversation to acquire BP.
But how did we reach the fact that a UK oil exploration company BP, which was established in 1909 as the Anglo-Persian Oil Company, is now seen as a possible acquisition target for its long-term rival?
Reset
Back in 2020, under the guidance of the then newly appointed CEO Bernard Loni, BP announced that it would be on a strategy to remake itself as one. “2050 or soon a net-zero company,” Increasing your investment in renewable energy projects. The energy giant committed to perform “converting”, determining this new strategy.
At that time, Loni admitted that the shift would be a challenge, but argued that it was “a tremendous opportunity”.
Initial burst
Loni started a strategy, such as the Kovid -19 epidemic was making its way around the world, triggering a demand jerk and the prices of raw raw. Energy giants posted their first full year loss in a decade, but the company posted an annual benefit in 2021, posting an annual profit of $ 2021, more than $ 27.65 billion in 2022, as Russian’s Ukraine invasion increased oil prices.
Looney appreciated the results, stating that CNBC The firm was now leaning in its strategy.
He said, “We are announcing an investment of $ 8 billion in energy infection in energy infections in this decade and in this decade there are $ 8 billion more in oil and gas in support of energy security and energy power.”
It was reinforced by increased investment forecasts in the company’s energy infections, published in the 2023 edition of BP Energy outlookThat fossil fuel share in primary energy will decrease from about 80% to 20% in 2050 in 2019.
Loni departs
BP was released when Bernard Loni announced its resignation after less than four years in the job in September 2023, the company revealed that he was not “fully transparent in his previous revelations” about the relationship in the workplace before becoming CEO.
The Chief Financial Officer Murray Achincloss then stepped as an interim CEO before being appointed on a permanent basis in January 2024.
But the person who operated BP’s vision as a renewable energy veteran was now out of the building.
Speculation mounts
With the depreciation of annual profits in both 2023 and 2024, with Loni’s departure and BP shares raise new questions about its future as a constant underperformance, oil major strategy and a standalone company as compared to their peers in BP shares. In addition to Shell, Chevron and Exon Mobil have also been postponed as possible suits for BP, while Emirates’ Adnoc allegedly seen some of its gas assets.
Activist investor Elliot Allegedly created a stake in the oil head in February, before Auchincloss was revealed BP’s strategic reset It has been determined to increase investment in oil and gas and focus on renewal. Investors with shares below 15% have not yet been affected.
I am talking to CNBC aprilAuchincloss resolved concerns that the company is becoming an acquisition target, saying that “we are a strong, independent company. His colleague, Shell CEO Well Sawan, meanwhile, was stated in CNBC. june “We have a very high bar” for M&A opportunities, but argued that the company is in favor of buying its own shares back.
What will happen next
Strong rejection of the shell of these reports has been thrown to a potential acquisition bid for BP for now. Morningstar’s senior equity analyst Alan Good has questioned the properties of a shell deal for BP at this point, stated to CNBC that “until the evaluation is super attractive”, it will probably not be a headache for the authorities.
