The discussions on the largest transaction in the oil industry have started at the beginning of the century
The Shell logo, photo: dreamstime.com
Shell has started the first round of negotiations on the purchase of the BP rival, in a transaction that would be the largest in the oil sector in recent decades.
The purchase of BP would bring Shell to compete with larger rivals, such as Exxon Mobil and Chevron, writes Wall Street Journal.
The terms of the discussions could not be disclosed, and the agreement is far from being certain, warned sources familiar with the situation and who discussed with the Wall Street Journal on the edge of this potential historical agreement.
The discussions advance, but at a slow pace, added a source.
If an agreement is reached, this would be the largest in the oil industry from the monumental fusion of $ 83 billion that created Exxon Mobil at the beginning of the century.
Out of position of force
Shell comes into discussions from a position of force, its actions significantly exceeding the performance of BP in recent years. Shell has a market value of over $ 200 billion.
BP remained behind the big oil companies after a failed attempt to give up fossil fuels and call for renewable energy sources. He also went through many managerial changes and operational disasters.
Since then, he has taken several measures to alleviate investor concerns. Earlier this year, he announced plans to increase oil and gas production and drastic reduction in clean energy investments.
Castrol sale
Also, the company is trying to sell its business with lubricants, operating under the Castrol brand, and said it could give up at least part of its LightSource solar energy unit.
Recently, he announced that his president, Elge Lund, a key architect of the company's carbon emissions strategy, intends to resign.
Reducing Green Energy Objectives
Meanwhile, Shell has focused on his most profitable businesses, promising to extract more oil and gas and also reduce their green energy goals.
The CEO of Shell, Wael Sawan, recently said that the company's ambition for large transactions would be raised. Shell announced in May a redemption plan of billions of dollars, the most recent in a long series of massive redemptions. He also collaborated with bankers to a possible sale of his assets in the chemical division in Europe and the United States.
