According to sources cited by Bloomberg, Shell is quietly exploring a potential takeover of rival BP, a merger that could reshape both the energy sector and America’s convenience store landscape. Talks are said to be in the early stages, with Shell watching closely to see if BP’s stock continues to slide before making any formal move. Executives from Shell have reportedly been meeting with advisors in recent weeks to weigh their options.
Neither company has officially commented on the potential deal, though a Shell spokesperson told Bloomberg that the company remains focused on “performance, discipline, and simplification.” CSP Daily News reached out for further comment on Monday morning but received no response.
If Shell pulls the trigger, it would be one of the largest oil mergers in modern history, a tie-up between two London-based giants who have taken increasingly different paths in recent years.
BP’s Struggles Meet Shell’s Cautious Optimism
BP has had a rough run. The company recently announced a full strategic reset, stepping away from its previous clean-energy commitments and doubling down on fossil fuel development. That includes a plan to increase oil and gas output in the United States by more than 50 percent by the end of the decade.
Still, the pivot hasn’t reversed BP’s financial slide. First-quarter profits fell sharply to $1.4 billion, down nearly half from a year ago. The company’s market cap now sits at less than half of Shell’s, and investors are growing restless. Activist hedge fund Elliott Investment Management recently disclosed a 5 percent stake in BP, signaling mounting pressure for a turnaround.
Shell, on the other hand, has fared better. While its stock is down about 14 percent over the past year, the company still posted $5.6 billion in adjusted earnings last quarter, a 52 percent jump from the previous period. CEO Wael Sawan told analysts Friday that the company would consider acquisitions, but only if they add value quickly.
“We have to have our own house in order,” Sawan said during a call with analysts, adding that Shell has set aside between $1 billion and $2 billion in capital for potential deals. “We will be prudent,” he said. “But the bar is high.”
What It Could Mean for C-Stores
Beyond the energy markets, a Shell-BP merger would also send ripples through the convenience store business. BP owns both ampm and Thorntons, two sizable c-store chains in the U.S., while Shell operates a nationwide network of gas station-branded stores.
In the latest CSP Daily News ranking of U.S. convenience retailers, BP sits at No. 5 by store count. Shell is listed at No. 38. Combining those footprints could alter the competitive landscape across dozens of U.S. markets.
This news also comes as other mega-deals are taking shape. Last week, reports surfaced that Circle K’s parent company, Alimentation Couche-Tard, and 7-Eleven owner Seven & i Holdings had signed a nondisclosure agreement to continue their ongoing $47.2 billion merger talks.
The timing suggests a broader wave of consolidation may be underway in the fuel and retail sectors, driven by volatile energy markets and shifting consumer trends.
A High-Stakes Decision Ahead
Shell’s decision to pursue BP will depend heavily on market conditions in the coming months. Both oil prices and equity values remain uncertain. If BP’s performance continues to sag while Shell’s financials stay strong, the gap between the two firms could widen, making a takeover even more attractive.
But for now, insiders say the conversations remain informal and preliminary. Shell isn’t rushing, and BP’s next few quarters will likely determine whether this potential mega-merger becomes a reality, or just another headline in a year full of bold moves.
