Latest news with #UKTakeoverCode
Irish Independent
27-06-2025
- Business
- Irish Independent
Shell refutes reports it is lining up a bid for rival BP
Today at 00:30 Shell said it has no intention of making a takeover offer for BP, refuting an earlier report that two of Europe's biggest companies were in active merger talks. The announcement quells speculation that the UK's two oil majors would end up combining, following several years of poor performance from BP and rising pressure from activist shareholder Elliot Investment Management. Shell's statement means it is bound by the UK Takeover Code, largely preventing it from submitting an offer for BP for six months.
Business Times
26-06-2025
- Business
- Business Times
Shell says it has no intention of making an offer for BP
[LONDON] Shell said it has no intention of making a takeover offer for BP, refuting an earlier report that two of Europe's biggest companies were in active merger talks. The announcement quells speculation that the UK's two oil majors would end up combining, following several years of poor performance from BP and rising pressure from activist shareholder Elliot Investment Management. Shell's statement means it is bound by the UK Takeover Code, largely preventing it from submitting an offer for BP for six months. 'In response to recent media speculation, Shell wishes to clarify that it has not been actively considering making an offer for BP,' it said in a statement on Thursday (Jun 26). The company 'has not made an approach to, and no talks have taken place with, BP with regards to a possible offer. BP's shares jumped as much as 10 per cent in New York on Wednesday after the Wall Street Journal reported that the company was in early-stage takeover talks with its larger rival. The stock pared gains as Shell swiftly dismissed the report as 'market speculation.' BP's prolonged period of under-performance stems in large part from a net zero strategy embraced by former chief executive officer Bernard Looney. He left the company in 2023 over his personal conduct leaving his successor, Murray Auchincloss, to grapple with a failing clean-energy strategy. Auchincloss announced a 'reset' in February that included a pivot back to oil and gas, a reduction in share buybacks and promises to sell assets and pay down debt. The new strategy got a lukewarm reception from many investors, and did not go far enough for Elliott, which has continued to push for more radical change. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up It was against this backdrop that BP became seen increasingly as a potential takeover target. Although no company came forward with an offer, several of BP's peers and rivals were said to be appraising the situation behind closed doors. Bloomberg reported in May that Shell had been studying the merits of a takeover, but was waiting for further stock and oil price declines before deciding whether to pursue a bid. Abu Dhabi's main oil company has evaluated whether it could buy some of BP's key assets should the British firm decide to break itself up or come under pressure to divest more units, Bloomberg reported earlier in June. While Shell's statement douses the majority of the takeover speculation related to BP, the six-month standstill under UK takeover rules isn't absolute. It could end early under a limited number of exceptional circumstances, including if BP receives an offer from another suitor or invites a fresh approach, or there is a 'material change' of circumstances. And major changes at BP are set to continue. The company is searching for a new board chairman after Helge Lund announced in April his intention to step down. Lund's role as a key backer of the net zero strategy made him focus of criticism from Elliott, which remains one of BP's largest shareholders. BLOOMBERG
Euronews
26-06-2025
- Business
- Euronews
Shell says it's not in talks to acquire BP as takeover rumours swirl
Oil giant Shell said on Thursday that it had 'no intention' of making an offer for its UK rival BP and asserted that no such talks between the firms had taken place. In line with the UK Takeover Code, Shell's announcement means that it can't submit another bid for six months, unless certain conditions change. If another bidder for BP emerges, for instance, Shell could look to acquire the company. The firm was responding to a Wall Street Journal report that suggested the firms were in discussions regarding a £60 billion (€70.4bn) takeover. The megamerger would create a global energy group worth more than £200bn (€234.68bn). BP shares rose in value on the speculation, closing 1.64% higher in daily trading. CEO Murray Auchincloss, who has headed up BP since early 2024, is focused on boosting the firm's performance in response to pressure from investors, notably from activist hedge fund Elliott Management. In efforts to do so, BP said earlier this year it would increase oil and gas spending by about 20%, while cutting renewable investment by around 70%. This came after BP had pledged in 2020 to reduce oil and gas output by 40% by 2030. Over the past two years, BP's valuation has underperformed against competitors Shell and ExxonMobil, firms that are prioritising more oil and gas output.
Fashion Network
19-06-2025
- Business
- Fashion Network
Frasers group won't bid for Revolution Beauty, but reserves right to rethink
Retail giant Frasers Group said on Thursday that it won't be bidding for Revolution Beauty after having confirmed earlier this month that it was looking at a cash offer for the up-for-sale business. Yet there were caveats and as is often the case with Frasers' acquisition activity, this may not be the end of the story. In a brief stock exchange release headlined 'Statement of Intention Not to Make an Offer for Revolution Beauty Group plc', it said that it 'does not intend to make an offer for Revolution Beauty… [and] Frasers Group and any person(s) acting in concert with it will, except with the consent of the Takeover Panel, be bound by the restrictions contained in Rule 2.8 of the Code'. Rule 2.8 of the UK Takeover Code restricts anyone who's said they have no intention to make an offer for a company from making another offer or acquiring shares in that company for six months. But the Takeover Panel can grant dispensations from this rule and Frasers said it. 'reserves the right to set the restrictions in Rule 2.8 of the Code aside in the following circumstances: with the agreement of the board of directors of Revolution Beauty; following the announcement by or on behalf of a third-party of a firm intention to make an offer for Revolution Beauty; if Revolution Beauty announces a Rule 9 waiver proposal (as described in Note 1 of the Notes on Dispensations from Rule 9 of the Code) or a reverse takeover (as defined in the Code); and if there has been a material change of circumstances (as determined by the Takeover Panel)'. So as usual, we just need to watch and wait.
Fashion Network
19-06-2025
- Business
- Fashion Network
Frasers group won't bid for Revolution Beauty, but reserves right to rethink
Retail giant Frasers Group said on Thursday that it won't be bidding for Revolution Beauty after having confirmed earlier this month that it was looking at a cash offer for the up-for-sale business. Yet there were caveats and as is often the case with Frasers' acquisition activity, this may not be the end of the story. In a brief stock exchange release headlined 'Statement of Intention Not to Make an Offer for Revolution Beauty Group plc', it said that it 'does not intend to make an offer for Revolution Beauty… [and] Frasers Group and any person(s) acting in concert with it will, except with the consent of the Takeover Panel, be bound by the restrictions contained in Rule 2.8 of the Code'. Rule 2.8 of the UK Takeover Code restricts anyone who's said they have no intention to make an offer for a company from making another offer or acquiring shares in that company for six months. But the Takeover Panel can grant dispensations from this rule and Frasers said it. 'reserves the right to set the restrictions in Rule 2.8 of the Code aside in the following circumstances: with the agreement of the board of directors of Revolution Beauty; following the announcement by or on behalf of a third-party of a firm intention to make an offer for Revolution Beauty; if Revolution Beauty announces a Rule 9 waiver proposal (as described in Note 1 of the Notes on Dispensations from Rule 9 of the Code) or a reverse takeover (as defined in the Code); and if there has been a material change of circumstances (as determined by the Takeover Panel)'. So as usual, we just need to watch and wait.
