A PYMNTS Company

UK: Exxon-BP acquisition talk resurfaces

 |  March 12, 2017

US energy giant ExxonMobil has reportedly gauged potential interest among BP’s major shareholders regarding a possible takeover, British newspaper Evening Standard reported on Friday.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    According to Evening Standard, which did not specify its sources, BP is reportedly worried that it could be a vulnerable target of an offer exceeding US$145.7 billion. Some of BP’s shareholders are believed to be not very happy with the current share price of BP in London, which is currently around 30 percent lower than what it was before the 2010 Deepwater Horizon disaster. Since the worst oil spill disaster in US history, BP has often been the object of market speculation that it is a target of a takeover bid.

    As well as the sheer size of a deal, a buyer of BP might be forced to accelerate the payment of as much as two-thirds of the $20B-plus in penalties levied for the Gulf of Mexico oil spill, which Kapadia says “may not be what someone would want to take on.”

    Such a combination also likely would attract the attention of antitrust regulators around the world, particularly in the UK “given the excitable nature of British domestic politics at the moment,” Canaccord’s Alex Brooks says.

    Full Content: Standard

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.