BP
Note: This is a daily stock update and the information stands true as of 05/05/25, 09:00 CET.
Company Update:
Expert Opinion:
This is definitely good news for BP as speculation will help boost the share price. For Shell, over the short term, pressure is likely to be a slight negative as people may fear they will indeed launch into an operation for which execution risks are significant and would be paid (at least partially) in new Shell shares. While our expert remains bullish on oil companies over the medium run, the current macro economic outlook and the fall in oil prices will weigh on the shares. Total and Shell are our most favored companies but we will likely find more attractive entry prices in the near future.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Company Update:
According to an article on Bloomberg over the weekend, Shell is considering a takeover on BP and has several investment banks working on a potential deal. However, Shell would wait for BP price to fall further in line with the Brent and WTI. Shell is extremely committed to its strong share buy back program and therefore we believe they would cut it to finance a takeover of BP in cash only, even though the deal makes a lot of strategic sense. A deal financed through shares and cash is the most likely option.
As a reminder, you can use our M&A too to simulate the impact of a takeover of Shell on BP and get the full consolidated account of the new company.
But, while such a tie up could make sense as companies know each other well, operate is similar geographies and are even partners on some fields, the stand-alone option for Shell is equally attractive. According to the company, an alternative solution could be for small bolt on acquisitions and boost its share buy back program.
Expert Opinion:
This is definitely good news for BP as speculation will help boost the share price. For Shell, over the short term, pressure is likely to be a slight negative as people may fear they will indeed launch into an operation for which execution risks are significant and would be paid (at least partially) in new Shell shares. While our expert remains bullish on oil companies over the medium run, the current macro economic outlook and the fall in oil prices will weigh on the shares. Total and Shell are our most favored companies but we will likely find more attractive entry prices in the near future.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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