Shell is said to be considering a bid for BP.

Shell is reportedly considering a takeover of BP, which has faced challenges after its early push for a rapid energy transition. Bloomberg cited unnamed sources for this information.

The Financial Times reported Shell's CEO, Wael Sawan, stating that he prefers to buy back Shell’s own stock rather than pursue BP. Sawan mentioned, “We will always look at these things, but you are also looking to see what the alternative is. Right now, buying back Shell [shares] for us continues to be absolutely the right alternative to go for.”

A Shell spokesperson confirmed to Bloomberg that the company remains focused on performance, discipline, and simplification.

However, Bloomberg's sources mentioned that Shell is evaluating a takeover depending on BP's stock trajectory, which has fallen nearly 30% in the past year. They added that no decision is guaranteed, and Shell might choose share buybacks and smaller acquisitions instead.

BP's first-quarter net profit was $1.38 billion, missing analyst expectations and reflecting a 49% annual decrease, alongside a planned $750 million for share buybacks.

Conversely, Shell reported a stronger-than-expected net profit of $5.58 billion for the first quarter, down 28% year-over-year, and announced $3.5 billion for stock repurchases in the second quarter.

Currently, Shell's market value is approximately $200 billion, double that of BP's $74 billion.