BP and Shell in Merger Talks -- Times of London

BP and Royal Dutch Shell are said to be in merger talks that would create a £250 billion oil giant, according to the Times of London. "The City is awash with talk that Britain’s two largest oil companies have engaged financial advisors to discuss terms for a so-called friendly merger that could result in £2.5 billion of cost savings for the enlarged group," it wrote. It says BP, under previous CEO Lord Browne, was thought to have approached Shell last year, and that those plans have now been rekindled under current CEO Tony Hayward. According to website This is Money, company advisors and executives are involved in 'round the clock' negotiations. It says the combined entity would produce over 70% more oil and gas than industry leader ExxonMobil. BP shares are up 2% over the past three days, while Royal Dutch Shell shares have gained 4.5% over the same stretch.

Sources: Times of London, This is Money
Commentary: Option update 7-3-07: Royal Dutch Shell volatility flat [Blogging Stocks] • Oil Majors: Earnings Per Second • Barron's: Oil Guru Art Smith's Picks for 2007
Stocks/ETFs to watch: BP plc (BP), Royal Dutch Shell (RDS.A), ExxonMobil Corp. (XOM)

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Comments

[erniem:]

Wow. Let me say that again Wow. This makes a lot of sense and adds to both companies, both of which have taken a beating lately. Not the end big company mergers either.

2007 Jul 03 11:59 AM

[Mmarrkk:]

Can't wait to hear the lib's and our silly congressmen wail about this one! Then they'll figure out that these are two non-US companies and they have no control over the deal. Great deal for the companies and probably for industry. Go ahead cry babies, start your boo hooing.

2007 Jul 03 02:49 PM