- BP stock holds steady after Shell denies takeover talks, saying it’s not considering an acquisition. Investor focus shifts to fundamentals.
BP shares are holding steady near $30.28 after Shell categorically denied it was considering a takeover bid, putting an end to swirling market speculation. The oil major confirmed no discussions had taken place and that under the UK’s takeover rules, it is now barred from making an offer for the next six months.
Shell’s firm denial comes after a Wall Street Journal report stirred the markets, suggesting a potential mega-merger between two of the world’s largest energy companies. But with CEO Wael Sawan reiterating that capital is better deployed on share buybacks than acquisitions, the rumors have been swiftly extinguished.
Even with the deal chatter shut down, BP is back on investors’ radar. The stock has traded at a discount to peers for years, largely due to its earlier push toward renewables. That shift, while ambitious, left BP trailing when oil and gas prices spiked. And while the company has since dialed back those green plans, many investors are still watching from the sidelines, unsure if BP can fully win back market confidence.
Behind the scenes, activist hedge fund Elliott holds a more-than-5% stake in BP and has been pressing for stronger cost discipline.
BP Stock Price Analysis
- Current price: $30.28
- Resistance: $31.00, then $32.50
- Support zones: $29.50, then $28.80
Outlook
BP remains a stock surrounded by strategic tension. While Shell’s formal withdrawal takes one suitor off the table, the valuation gap between BP and its global peers is likely to keep buyout rumors alive. For now, investor focus returns to fundamentals, earnings, energy prices, and whether management can regain shareholder confidence without a buyout boost.
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