BP CEO downplays speculation of megamerger
BP Chief Executive Bob Dudley has hinted that he is not interested in a transformational merger with another major oil company, the Financial Times reported. Dudley, speaking at the HIS CERA Week conference yesterday, 21 April, said he is happy with BP’s portfolio and that he does not see any impetus for substantial consolidation unless the price of oil remains low for a considerable length of time. Dudley also questioned whether scale is seen as a positive attribute in the industry.
Dudley’s comments follow speculation that Royal Dutch Shell’s GBP 55bn (EUR 76.54bn) agreed takeover of FTSE-100 rival BG Group could prompt megamergers of major oil companies.
The item noted speculation that BP might attract an offer from a competitor, and that there have been persistent rumours thatTexas-based ExxonMobil might make an offer for BP.
BP’s Gulf of Mexico assets and its stake in the Russian energy group Rosneft would benefit ExxonMobil, the item said. However, some analysts cited by the newspaper argued that ExxonMobil is unlikely to make a move on BP while uncertainty remains regarding BP’s liabilities from the Deepwater Horizon oil spill.
Dudley’s comments suggest that BP’s board might be resistant to any offer from ExxonMobil, the item said.
Separately, the article said that BP had denied a report from Bloomberg claiming that the FTSE-100 company was consulting with advisers about defence strategies against potential takeover scenarios. A Bloomberg report yesterday, 21 April said BP was talking to advisers including Morgan Stanley.
BP’s market capitalisation stood at GBP 87.62bn (EUR 121.93bn) at the close of trading in London yesterday.
Source Financial Times, previously reported intelligence