In early 2025, senior leadership at Shell, specifically Chief Executive Wael Sawan and Chief Financial Officer Sinead Gorman, rejected an internal proposal to acquire rival BP. This rejection led to the resignation of Greg Gut, the executive vice president in charge of corporate strategy, mergers and acquisitions.

Rationale for the Proposed Acquisition

The M&A team, led by Gut, had argued that management upheaval at BP and its depressed share price presented a strategic opportunity for Shell to secure a deal. This speculation was fueled earlier in the year by BP's lagging share performance and investor dissatisfaction with its low-carbon energy strategy.

Leadership Opposition and Aftermath

Sawan and Gorman opposed the move, believing a merger would disrupt Shell's own strategic plans. Following media reports about a potential bid, Shell issued a formal statement in June clarifying it had "no intention of making an offer for BP." By publicly stating this, Shell became bound by UK takeover regulations, preventing it from making an offer for a six-month period. Although this restriction is set to expire near the end of the year, the reported opposition from the chief executive suggests Shell does not intend to revive the pursuit.

BP's Recovery and Official Statements

Subsequently, BP's share price has recovered as the company refocused on its core oil and gas business and scaled back its low-carbon operations. In response to the report, a Shell spokesperson declined to comment further, referencing the company's previous clear statement on the matter.