Mega Merger in the Making? What a Shell–BP Deal Could Mean for Global Energy

In May 2025, the energy sector is abuzz with speculation that Shell is evaluating a potential acquisition of BP. This comes amid a backdrop of declining oil prices, which have recently hit a four-year low due to increased OPEC+ production and global demand uncertainties. Shell, with a market capitalization of approximately £149 billion, is nearly twice the size of BP, whose shares have fallen nearly 30% over the past year, reflecting investor concerns over its strategic direction and financial health. While Shell’s CEO, Wael Sawan, has expressed a preference for share buybacks over largescale acquisitions, the company is reportedly working with advisers to assess the feasibility of a takeover, potentially waiting for further declines in BP’s stock and oil prices before making a move.