Shell denies WSJ report of BP acquisition talks, focuses on performance and share buybacks.

Shell denies WSJ report of BP acquisition talks, focuses on performance and share buybacks.

Shell plc (SHEL) has denied reports of preliminary talks with BP (BP, Financial) regarding a potential merger, as reported by The Wall Street Journal. The denial came amidst the company's ongoing focus on enhancing shareholder value through its share buyback program and performance initiatives.

Shell's denial follows news of the reported discussions, which sent BP's stock up by approximately 7% in U.S. trading and Shell's stock down by around 3%. The potential merger, if realized, would combine two major UK-based oil giants and significantly reshape the global oil industry landscape [2].

Shell has been actively engaged in a share buyback program, repurchasing approximately 1.58 million shares on June 23, 2025, as part of its ongoing capital return strategy initiated on May 2, 2025. The company acquired 793,000 shares on the London exchanges (LSE, Chi-X, BATS) at prices ranging from £26.83 to £27.17 and 787,000 shares on European exchanges (XAMS, CBOE DXE, TQEX) at prices between €31.51 and €31.90 [1].

The buyback program is managed by BNP PARIBAS SA, ensuring an objective approach within set parameters and compliance with UK and EU market regulations. Shell's strategic share buybacks aim to reduce the outstanding share count, boosting earnings per share and supporting the stock price through additional market demand.

Shell's spokesperson emphasized the company's commitment to unlocking value through performance, discipline, and streamlined operations. The company's focus on these initiatives underscores its management's confidence in the company's undervaluation at current market prices.

References:
[1] https://www.gurufocus.com/news/2939672/transaction-in-own-shares-shel-stock-news
[2] https://www.gurufocus.com/news/2945937/shell-and-bp-in-preliminary-talks-for-major-oil-industry-merger