Exceeding $1.9 Trillion: Two International Oil Giants May Merge

Bloomberg News cited insider reports that this oil giant has been continuously discussing with advisory teams in recent weeks about the feasibility and strategic value of acquiring BP. The company is waiting for further declines in stock price and oil price before deciding whether to proceed with the acquisition. The final decision will largely depend on whether BP's stock price continues to fall. Over the past 12 months, due to the business restructuring plan failing to gain investor approval coupled with a plunge in oil prices, BP's stock price has cumulatively fallen by nearly one-third.

Shell may also hold back, waiting for BP to take the initiative and seek other potential bidders. Reports suggest that the relevant discussions are still at an early stage, and Shell may ultimately choose to focus on share buybacks and small acquisitions rather than pursue such a large-scale merger.

A spokesperson for Shell stated: "As we have repeatedly emphasized, our current focus is to continuously enhance the company's operational efficiency, maintain strategic focus, and advance business simplification, thereby fully unleashing Shell's intrinsic value."

For many years, BP and Shell were almost of comparable size, but in recent years, Shell's scale has grown to nearly twice that of BP, with a market value of approximately £149 billion.

However, in the face of pressure to improve profitability and cut costs, BP CEO Murray Auchincloss announced plans to sell $20 billion worth of assets by 2027 and reduce spending and stock buybacks. To boost investor confidence, the company also announced the departure of its strategic director.