How BP became a potential takeover target
British oil major BP logo.
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For weeks, market languages have been swinging about a potential merger between the UK’s oil giants – Shell said that she was in talks to obtain BP until it ends during speculation weeks on Thursday.
However, how did we come to the point where BP, the British Petroleum Discovery Company, which was founded in 1909 under the name of Anglo-Persian oil company, was now seen as a possible acquiring target for its rival for a long time?
Reset
In 2020, under the guidance of the newly appointed CEO Bernard Looney, BP While increasing its investment in renewable energy projects, “2050 or earlier net zero company”. The energy giant decided to “perform performance while transforming” while revealing this new strategy.
At that time, Looney acknowledged that the shift would be a challenge, but he argued that it was “also an enormous opportunity”.
First explosion
Looney strategy just as the COVİD-19 pandem progresses around the world, triggered a demand shock and threw raw prices to crater. The energy giant issued the first full year loss in a decade, but the company sent an annual profit of $ 7.6 billion in 2021, and sent Russia’s invasion of Ukraine’s oil prices before it endured in 2022 up to $ 27.65 billion.
BP stock price.
Looney praised the results, The CNBC firm is now leaning on its strategy.
“This decade is more than $ 8 billion in the energy passage of this ten years, and this decade is more than $ 8 billion to oil and gas to support energy safety and energy consensuality.” He said.
This increasing investment in the company’s energy transition was strengthened by estimates published in the 2023 editions of the BPs. Energy viewThe share of fossil fuels in primary energy decreased from approximately 80% to 20% in 2019 in 2019.
Looney is leaving
Bernard Loney, Bernard Looney, in September 2023 after suddenly announced his resignation, before the CEO before the workplace relationships in the workplace relationships “was not completely transparent in his statements” announced.
Then, the Chief Finance Manager Murray Auchincloss, in January 2024, took a temporary CEO before being permanently appointed.
However, the man, who led BP’s vision as a renewable energy giant, was now outside the building.
Speculation links
In both 2023 and 2024, he asked new questions about the decrease in annual profits, the separation of Looney and the low performance of BP’s shares compared to his peers, and the future of the oil major and his future as an independent company. In addition to Shell, Chevron and Exxon Mobile were also launched as potential suitors for BP, and Emirates reportedly looked at some of the gas assets of Adnoc.
Activist investor Elliott reportedly created a share in the main branch of oil in February just before the emergence of Auchincloss BP’s strategic reset This began to increase oil and gas investment and reduce focus on renewable energies. Investors have not yet affected, since then, 15% shares have fallen.
Auchincloss, who spoke to CNBC in April, said, “We are a strong, independent company.
What’s next
Shell’s rejection of these reports firmly seems to be throwing cold water on a potential transfer offer for BP for now. Morningstar Senior Özkaynak Analyst Allen Good questioned the principle of a shell agreement for BP and said to CNBC that he would not be worth the headache for managers.
